The first quarter of 2022 marked a record for commercial real estate globally with the market size growing higher than the five-year average. Now, a number of geopolitical challenges are aggravating an economic slowdown and the rising cost of living worldwide.
Despite this, commercial real estate in the UAE is looking up. In Dubai, various initiatives are boosting demand and simultaneously making conducting business easier and more cost-effective.
Here are some of the key macroeconomic trends that will have a bearing on the immediate future of commercial real estate in the UAE.
Changes in consumer behaviour
While the popularity of remote work in the aftermath of of COVID-19 led to a short-term decrease in demand for typical retail spaces and office buildings, currently, most of new and older business districts are running at max occupancy in the UAE.
The upward trajectory is expected to continue between 2022-27. This hints at positives from the new visa schemes introduced for investors and freelancers, which has now enabled people to work from shared and co-working spaces. This is, in turn, giving rise to higher demand for such concepts.
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