The UAE’s commercial property sector recorded the highest occupier demand in a decade in the second quarter on the back of continued growth in the country's economy, according to a new report.
Occupier demand in the Emirates reached plus 58 per cent during the April to June period, its highest reading since the second quarter of 2014 when it reported plus 64 per cent, the latest report by the Royal Institution of Chartered Surveyors (Rics), said on Thursday.
Property in the office segment recorded the highest demand followed by the retail and industrial sectors.
“This robust demand is supported by strong rental and capital value expectations, particularly in Dubai where population growth drives demand,” Abdullah Akaish, senior public affairs officer at Rics, said.
Lack of supply in the market as developers focus on building new residential projects is also having a positive impact on demand for commercial property.
“The gap between supply and demand for office space is boosting rental expectations, solidifying the market's positive outlook,” Mr Akaish said.
Property demand in the UAE remains strong as the economy grows on the back of higher oil prices and non-oil sector growth.
The UAE’s economy expanded by 3.6 per cent last year, compared to the 3.1 per cent estimated by the Central Bank of the UAE in the fourth quarter, the banking regulator said in June.
It is projected to grow 3.9 per cent in 2024 and by 6.2 per cent next year.
In the office segment, a total of 10,475 rental contracts were registered in Abu Dhabi in the first quarter, marking an annual growth of 9.1 per cent, while in Dubai, the number reached 46,850, up 35.8 per cent compared to the same period last year, according to a CBRE report earlier this year.
Gary Stevenson, commercial manager at haus & haus real estate, said Dubai is recording “remarkable expansion” in its commercial real estate sector, as demand increases “on the back of population growth and an increasing number of businesses relocating to capitalise on Dubai's strategic advantages”.
The city continues to attract companies because of its position as a global business and travel hub, its business-friendly environment, strong infrastructure and attractive tax policies, he told The National.
Dubai's key business districts, including Jumeirah Lakes Towers, Dubai International Financial Centre, Business Bay and Downtown, continue to attract significant interest from companies seeking to establish their operations.
“These areas are not only the most active but also the most preferred locations, offering a dynamic environment that supports business growth and innovation. Additionally, the government's continuous investment in infrastructure and progressive economic policies have further enhanced Dubai's appeal,” he said.
Back to offices
Dubai, Abu Dhabi and Riyadh have almost run out of prime office space as employees have returned to offices full-time following the coronavirus pandemic, Faisal Durrani, partner and head of Middle East research at Knight Frank, said.
“These cities are operating with occupancy levels for Grade A offices in excess of 98 per cent and in some cases, the best buildings in these cities, especially in Dubai, have long waiting lists, so they are 100 per cent occupied.”
More than four million square feet of office space is expected to be delivered in Dubai in the next four years and most of that has “actually been pre-leased”, he said.
On Wednesday, Aldar Properties unveiled plans to develop a Grade A office tower on Sheikh Zayed Road, with a net leasable area of 88,000 square metres. The development is expected to be completed by 2027, according to the company.
It also signed an agreement to acquire ‘6 Falak’, a fully occupied Grade A office building in Dubai Internet City amid strong demand in the market.
“Businesses are committing to space while it's under construction, because they know in the future, if they don't do that now, that will impact their long-term growth plans,” Mr Durrani said.
Impact of Saudi Arabia's new HQ regulation
Saudi Arabia’s new regional headquarters regulation, which was introduced in January, has not resulted in an exit or reduction in international firms' office space in Dubai, according to Paula Walshe, director of transactional services at Savills Middle East.
The regulation requires firms to set up a local base in the kingdom or risk losing out on government contracts.
However, companies with foreign operations not exceeding one million Saudi riyals ($266,000) can operate in the kingdom without local headquarters.
More than 120 foreign firms relocated their regional bases to Riyadh in the first quarter of this year 2024, marking a 477 per cent increase compared to the same period last year, Savills said on Wednesday.
In the second quarter, nearly 70 per cent of inquiries received by Savills originated from outside Saudi Arabia, with 50 per cent of them coming specifically from US and UK corporations, it said.
However, Dubai “remains a key office base for most corporate companies”, Ms Walshe said.
Future demand for commercial property is expected to be strong, driven by demographic growth and economic diversification efforts.
“Strategic planning to balance residential and commercial developments will be crucial to maintaining market stability and encouraging further investment,” Mr Akaish said.
UAE currency: the story behind the money in your pockets
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The story of Edge
Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, established Edge in 2019.
It brought together 25 state-owned and independent companies specialising in weapons systems, cyber protection and electronic warfare.
Edge has an annual revenue of $5 billion and employs more than 12,000 people.
Some of the companies include Nimr, a maker of armoured vehicles, Caracal, which manufactures guns and ammunitions company, Lahab
RESULTS
6.30pm: Meydan Sprint Group 2 US$175,000 1,000m
Winner: Ertijaal, Jim Crowley (jockey), Ali Rashid Al Raihe (trainer)
7.05pm: Handicap $60,000 1,400m
Winner: Secret Ambition, Richard Mullen, Satish Seemar
7.40pm: Handicap $160,000 1,400m
Winner: Raven’s Corner, Richard Mullen, Satish Seemar
8.15pm: Dubai Millennium Stakes Group 3 $200,000 2,000m
Winner: Folkswood, William Buick, Charlie Appleby
8.50pm: Zabeel Mile Group 2 $250,000 1,600m
Winner: Janoobi, Jim Crowley, Mike de Kock
9.25pm: Handicap $125,000 1,600m
Winner: Capezzano, Mickael Barzalona, Salem bin Ghadayer
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
COMPANY%20PROFILE%20
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Haltia.ai%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202023%0D%3Cbr%3E%3Cstrong%3ECo-founders%3A%3C%2Fstrong%3E%20Arto%20Bendiken%20and%20Talal%20Thabet%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20AI%0D%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2041%0D%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20About%20%241.7%20million%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Self%2C%20family%20and%20friends%26nbsp%3B%3C%2Fp%3E%0A
DAY%20ONE%20RESULT
%3Cp%3E%3Cbr%3E1.%20Charlotte%20Kool%20(NED)%20%E2%80%93%20Team%20DSM%3A%202hrs%2C%2047min%2C%2014sec%3Cbr%3E2.%20Lorena%20Wiebes%20(NED)%20%E2%80%93%20Team%20SD%20Worx%3A%20%2B4%20secs%3Cbr%3E3.%20Chiara%20Consonni%20(ITA)%20%E2%80%93%20UAE%20Team%20ADQ%3A%20%2B5%20secs%3C%2Fp%3E%0A
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
The specs: 2017 Ford F-150 Raptor
Price, base / as tested Dh220,000 / Dh320,000
Engine 3.5L V6
Transmission 10-speed automatic
Power 421hp @ 6,000rpm
Torque 678Nm @ 3,750rpm
Fuel economy, combined 14.1L / 100km
The Norwegian Nobel Committee, which awards the prestigious peace prize, held its final meeting on Monday, the Nobel Institute said Thursday, a day ahead of the announcement of the 2025 laureate.
This means a decision was made about the laureate or laureates before the conclusion of an agreement between Israel and Hamas, which included a ceasefire and the release of hostages.
President Donald Trump pushed for the ceasefire as part of a 20-point plan to resolve the Gaza war.
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
SEMI-FINAL
Monterrey 1
Funes Mori (14)
Liverpool 2
Keita (11), Firmino (90 1)
