Middle East

United Arab Emirates office market showed signs of recovery in the fourth quarter of 2021 – JLL

According to real estate and investment management firm JLL, the UAE’s office market segment showed steady signs of recovery in the fourth quarter of 2021. United Arab Emirates 2021 Review Report.

According to the report, Dubai’s central business district has seen increased demand for high-quality office stock, coupled with relatively limited supply in this segment, resulting in year-over-year rents for Grade A. It increased by 2% to an average of 1,712 dirhams per square meter. Yearly. Abu Dhabi’s Grade A rent also increased by 5%, averaging 1,650 dirhams per square meter.

Towards the end of 2021, the UAE saw the introduction of reforms such as a change in working week from Monday to Friday, coordination with the global market, new labor laws and visa options. The report states that in the medium to long term, such initiatives will help increase the competitiveness of the UAE by making it a more attractive place to attract, maintain, live and work in the skilled workforce. Is emphasized.

Khawar Khan, Head of Research for the Middle East, Africa and Turkey region of JLL, said: ..

Kahn added: “Residents are also interested in quality office space to minimize capital spending due to budgetary constraints.”

In the housing market, the relative affordability of villas and townhouses during the “Space Race” and pandemics helped stimulate a strong recovery in selling prices. This trend extended to the final quarter of 2021.

This was seen in both Dubai and Abu Dhabi. Waterfront development in Dubai and villa projects in Abu Dhabi, especially Saadiyat and Yas, were in demand from both investors and end users.

The retail market recorded sales and a recovery in sales in the previous quarter. This is due to a variety of factors, including deregulation due to the success of the UAE vaccination program, resumption of global travel, and the launch of the Expo 2020 event in October last year.

Due to uncertain economic conditions, retail occupants continue to seek incentives such as rent-free periods, contributions to capital spending on equipment, and revenue sharing options.

“In the United Arab Emirates, tourism recovery and increased employment are projected to drive healthy consumer spending growth from 2022 to 23. This could lead to higher retail sales. Retail sales are expected to broadly return to pre-pandemic levels by the end of next year, “Khan said.

Against the backdrop of expo events and strong leisure demand, Dubai’s occupancy reached 63% in the YT in November 2021, a significant increase from 40% in the same period last year. Over the same period, the city’s average daily rate (ADR) increased 25% year-on-year to $ 150. Abu Dhabi’s occupancy increased to 66% in the year to November 2021, compared to 60% in the previous year. Meanwhile, the capital’s ADR increased 4% year-on-year to $ 92 for the year to November 2021.

“The emergence of the new Omicron Covid-19 variant has created a wave of travel restrictions in the MENA region and elsewhere in the world. As a result, travelers and hoteliers face long-term uncertainty. Still, the hospitality market in the Arab Emirates is gradually improving in 2022 as both business and leisure travel is further improved as major source markets continue to ease travel restrictions. We expect it to continue to recover, “Khan concludes.

read: 2021: Dubai records the highest real estate sales transaction value in 12 years

https://gulfbusiness.com/uaes-office-market-displayed-signs-of-recovery-in-q4-2021-jll/ United Arab Emirates office market showed signs of recovery in the fourth quarter of 2021 – JLL

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