Business Bay, JLT and DIFC rank amongst top commercial locations so far
in 2014, reveals propertyfinder.ae
Business Bay continues to dominate the list of Dubai’s most searched
district for buying and renting office space in Dubai in the first quarter of
2014, revealed propertyfinder.ae, the UAE’s leading property portal. The
website, which recently released their Q1 2014 report covering the latest real
estate trends in the UAE, also noted a 35 and 55 percent quarter-on-quarter
rise in sale and rental values respectively, of commercial property in Dubai.
“Whilst the
top two locations for buying office space in Dubai, namely Business Bay and
Jumeirah Lake Towers have not changed, we have seen a 15 percent increase in
views of properties in these locations, quarter-on-quarter. In addition, DIFC,
which placed 9th in Q4 2013, has moved up in popularity, securing third spot
and a huge 45 percent hike in property views, over the same period. This year's
results are particularly interesting because they reflect a huge uptick in the
rate of growth of the commercial real estate sector, which has been trailing
behind the residential market in terms of pricing and investor and tenant
interest,” commented Michael Lahyani, CEO and Founder of propertyfinder.ae.
With Dubai
emerging as a go-to investment destination for the world’s wealthy and it being
one of the world’s fastest growing premium property markets, international
investors are driven to seek opportunities in the emirate. Whilst Indian,
British and Pakistani nationals account for majority of the foreign investment
into the Dubai property sector, interest from other overseas markets is also
growing. For instance, Chinese investors are ramping up their investment in the
Middle East in order to diversify their asset base. In January this year, the
government issued a law establishing the Dubai Investment Development Agency to
boost Dubai’s reputation as an international business hub and attract investors
to set up projects in the emirate.
Adding that
property values are expected to rise markedly in line with the improving
investment climate and economic confidence in 2014, Lahyani said, “Office sale
and rental prices are rising, providing strong capital returns and yields for
investors. For instance, rents in Business Bay in Q1 2014 were 27 percent
higher than those in Q1 2013 whilst leasing prices in Jumeirah Lake Towers rose
by over 15 percent during the same period. With over 250,000 jobs estimated to
be created within the next six years, more multinationals and start-ups are
expected to establish offices and invest in expansion in Dubai. This is in turn
likely to cause consumers to spend more and positively impact businesses.”
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