Why you should invest in commercial real estate in Dubai
As we enter 2023, the commercial property market in Dubai is poised for growth, driven by an expanding economy and increasing investor confidence. Dubai has always been a prime location for businesses to set up shop due to its strategic location, favorable tax policies, and world-class infrastructure. In this article, we will explore the current state of the commercial property market in Dubai and discuss its future prospects.
Current State of the Commercial Property Market in Dubai
Dubai’s commercial property market has seen a steady recovery over the past year. According to recent data, the occupancy rate in the city’s commercial buildings has been steadily increasing. This is mainly due to the increasing demand for office spaces from small and medium-sized enterprises (SMEs) and start-ups. The Dubai Multi Commodities Centre (DMCC) Free Zone, which is the largest free zone in the UAE, has also seen a surge in demand for commercial properties.
Another factor that has contributed to the growth of the commercial property market in Dubai is the Expo 2020. The event, which was postponed due to the COVID-19 pandemic, is finally set to take place in October 2023. This has led to a surge in demand for commercial properties in and around the Expo site. Many businesses are looking to set up temporary offices or exhibition spaces to take advantage of the increased footfall during the event.
Future Prospects of the Commercial Property Market in Dubai
The future of the commercial property market in Dubai looks bright. The city is expected to continue to attract businesses and investors from around the world due to its favorable tax policies, strategic location, and world-class infrastructure. In addition, the UAE government has taken several measures to attract foreign investment, such as allowing 100% foreign ownership of companies and introducing long-term residency visas.
Another factor that is expected to drive the growth of the commercial property market in Dubai is the upcoming Dubai South project. The project aims to create a new city that will be three times the size of Manhattan and will house up to one million people. The project is expected to create a demand for commercial properties in the area, which will further boost the city’s economy.
In conclusion, the commercial property market in Dubai is expected to continue to grow in 2023 and beyond. The increasing demand for office spaces from SMEs and start-ups, the upcoming Expo 2020, and the Dubai South project are all expected to contribute to the growth of the market. With the government’s efforts to attract foreign investment, Dubai is well-positioned to become a leading commercial hub in the region.