The Royal Institution of Chartered Surveyors unveils optimistic projections for commercial property in the UAE.
The UAE’s commercial property sector is poised for further growth as demand remains robust in the office, industrial, and retail markets. The Royal Institution of Chartered Surveyors Global Commercial Property Monitor Q1 2024 indicates that the UAE maintains strong sentiment in its commercial property sector compared to global standards.
Tenant demand remains very healthy at +45%, consistent with the previous quarter.
UAE commercial property
The office sector leads with a particularly strong demand at +60%, followed by industrial and retail sectors at +34% and +41%, respectively.
At the national level, the UAE stands out with improvements in both the Occupier Sentiment Index (OSI) and Investor Sentiment Index (ISI) readings, reaching +38 and +30, respectively, up from +27 and +16.
Rental values, capital value expectations, and sentiment towards investment enquiries remain positive across commercial property sectors. A majority (54%) of respondents believe the market is still in an upturn phase.
In Abu Dhabi’s free zone (ADGM), demand for prime office space remains high, especially from regional representative offices for international corporations. Additionally, there is an increased demand for logistics and data centers.
Only a limited number (3%) are repurposing office space, with the majority (82%) reporting no change or a decrease in tenants looking to downsize. Rising costs due to high demand are a challenge, but the outlook for commercial property in the UAE remains extremely positive and sustainable.
