Better Homes records rapid growth in 2007

Better Homes has reported a 500% growth in commercial sales over the first three quarters of 2007, according to the firm.
Better Homes records rapid growth in 2007
By Administrator
Sat 01 Dec 2007 04:00 AM

Better Homes has reported a 500% growth in commercial sales over the first three quarters of 2007, according to the firm.

Niraj Masand, director of commercial advisory at Better Homes, said the group has seen growth in all segments of the market including retail and office space, warehouses and labour camps.

"Spurred by the continued high level of demand on the leasing side, rising capital values, growing investor confidence and increased regulation in the market, the figure confirms that the commercial sector in Dubai remains popular with investors," he said.

"The current market conditions are extremely favorable to investors, enabling them to achieve high capital growth as well as some of the highest rental returns in the world. Business Bay is extremely hot right now, in the last six months we have seen large increases in sales prices which are now hitting up to US$600 per square foot from a starting point of US$325 per square foot."

The lack of available office space, caused mainly by delays in construction has created a surge in market prices but with many projects expected to hit the market in the next year, Masand believes there is still some way to go in the commercial sales market.

"There is such a high demand for office space in Dubai right now and with availability less than 1%, there is still a considerable amount of growth in capital values to be achieved. Demand for commercial units will continue for some time as existing businesses require space for relocation or expansion. Growth has also resulted from the number of new businesses moving into the emirate."

Masand believes Dubai is quickly establishing itself as a regional hub for businesses looking for a route into the GCC, India and Pakistan.

"Geographically Dubai is superbly located for businesses to gain access to many places. Politically it's stable, and now with increased regulation such as the escrow law, investor confidence has received an additional boost," he said.

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