Having estimated the latest trends in residential, office and commercial Dubai real estate markets, the world's leading experts from JLL consultancy came to a conclusion that Dubai is now in its initial phase of a new development cycle.
About 2,200 new residential units were added to the Dubai residential stock during the first three months of the year expanding it up to 458,500 units. First year quarter also recorded a surge of activity on the part of investors and end buyers significantly increasing the number of sales transactions. And although the annual rates are still negative, JLL expects the positive impact of Expo 2020 and other factors on the development industry in the long term.
In the office segment two new office buildings — B2B Office Tower in Business Bay and New Dafza in DAFZA district — added about 38,400 sq m of office space to the Dubai’s office stock in the first quarter of the year. These two, as well as other new office property projects handed over in Dubai recently, increased the emirate’s office up to almost 8.5 million sq m. Another 269,000 sq m and 368,000 sq m of offices are scheduled for handover in 2016 and 2017, respectively.
Commercial property sector in Dubai is doing even better. Here, the occupancy level is reaching 92% thanks to continually high demand for rent, while the average rentals have remained at the same level. The largest retail project delivered in Dubai in this quarter was City Walk in Jumeirah area, which added about 3,397,300 sq m of GLA to the retail stock. Another 233,500 square meters of commercial properties the city has received due to other new retail projects in the Al Wasl and Umm Suqeim areas. And for the next eight months JLL expects further growth in the sector, mostly due to the completion of the Dubai Mall - Phase two (52,400 sq m of commercial space).