Demand for office and retail space in the UAE is growing faster than anywhere else in the world, according to the latest report from the Royal Institution of Chartered Surveyors (RICS).
The real estate body’s Q3 Global Commercial Property Survey said that demand for commercial property in the Gulf state was at its highest since 2008, outstripping increases in other emerging markets including Russia and Thailand.
The report, which polled the opinions of 920 real estate professionals in the country, found a net rise in demand for commercial property of 48 percent compared to the same quarter a year ago.
“The improving economic picture in the UAE is likely to be lifting confidence in the domestic real estate market,” said Simon Rubinsohn, chief economist at RICS, in a statement.
“Strong growth of key sectors such as tourism, commerce and retail will impact directly on the commercial sphere.”
The survey said that despite a relative oversupply in the office space market, rental levels in this sector were anticipated to remain unchanged for the foreseeable future.
In terms of investment, buyer enquiries rose across all parts of the market during the quarter, RICS said, while rental expectations in the in the retail space also took an upward turn.
In a separate report published in October, Real estate specialist Cluttons said it had also seen increased investment activity and a modest level of positivity in the Dubai office market during the third quarter of 2012.
The company said its outlook for commercial property in the emirate was one of “cautious optimism”.
Its Q3 market report said recent investment purchases made in the first half of 2012 have involved both GCC purchasers and international companies.
It reported a “surprising number of transactions” during the normally quiet summer months, totalling US$545m.
Follow us on
