UAE Commercial Real Estate Market Size (2024 - 2029)

The UAE Commercial Real Estate Market is experiencing significant growth, driven by the country's robust economic expansion and its strategic position as a business hub between Europe and Asia. This has led to a substantial increase in demand for commercial spaces, creating a favorable environment for businesses. Despite challenges posed by the pandemic, the market has shown resilience, with a notable recovery in property prices and a surge in sales and leasing activities. Developers are prioritizing the swift execution of projects to meet investor expectations, contributing to the overall expansion of the market size.

Home Market Analysis Real Estate and Construction Research Real Estate Research Commercial Real Estate Research UAE Commercial Real Estate Market Market Size

Market Size of UAE Commercial Real Estate Industry

UAE Commercial Real Estate Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR (2024 - 2029) 6.00 %
Market Concentration Medium

Major Players

UAE Commercial Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

UAE Commercial Real Estate Market Analysis

The UAE Commercial Real Estate Market is expected to register a CAGR of 6% during the forecast period.

  • The UAE’s strong economic growth and global business prominence have fueled a remarkable demand for commercial space. With its strategic location bridging Europe and Asia, the UAE remains a desirable destination for businesses of all sizes. High demand provides an attractive environment for businesses, offering a vast pool of potential customers and partners.
  • Major real estate groups already announced relief packages in 2020 across their business segments, including rent reliefs, deferred payment plans, and waivers of administrative charges, to support their customers and business partners. Major public and private developers are currently focused on ensuring a faster execution of ongoing projects to deliver the best quality product to investors.
  • After an uncertain year due to the pandemic, 2021 has seen a big shift in Dubai's commercial property market, with increased prices for sales and leasing. After years of limited supply and decreasing prices, the market started recovering with a surge in demand for sales. The rental prices have been at a nine-year low up to 2021. However, in five years, the prices started rising and stabilizing for the first time in five years. As a result, there has been intensive buying of office spaces by investors and end-users, resulting in a 132% increase in office sales in the first eight months of 2021.

UAE Commercial Real Estate Industry Segmentation

Commercial real estate is a property used exclusively for business-related purposes or to provide a workspace rather than a living space, which would instead constitute the residential real estate. Commercial real estate is often leased to tenants to conduct income-generating activities. In general, it includes buildings used for commercial purposes, such as office buildings, warehouses, and retail buildings (e.g., convenience stores, big-box stores, and shopping malls). This report aims to provide a detailed analysis of the UAE commercial real estate market. It focuses on the market dynamics, technological trends, insights, government initiatives taken in the commercial real estate sector, and COVID-19 impact on the market. Also, it analyzes the key players in the market and the competitive landscape.

The commercial real estate market in the United Arab Emirates is segmented by type and key cities. The report offers market size and forecast for the UAE commercial real estate market in value (USD billion) for the above segments.

By Type
Offices
Retail
Industrial & Logistics
Hospitality
Other Types
By Key Cities
Dubai
Abu Dhabi
Sharjah
Rest of United Arab Emirates
Need A Different Region Or Segment?
Customize Now

UAE Commercial Real Estate Market Size Summary

The UAE commercial real estate market is experiencing a robust growth trajectory, driven by the country's strong economic performance and its strategic position as a global business hub. The demand for commercial space is on the rise, attracting businesses of all sizes due to the UAE's favorable business environment and vast network of potential customers and partners. In response to the challenges posed by the pandemic, major real estate groups implemented supportive measures such as rent reliefs and deferred payment plans. This proactive approach, coupled with a focus on expediting project execution, has contributed to the market's recovery. The commercial property sector in Dubai, in particular, has seen a significant shift, with increased prices for sales and leasing, marking a departure from the previous trend of limited supply and decreasing prices. The introduction of initiatives like the One Free Zone Passport is expected to further stimulate demand for office spaces in the region.

The market dynamics in Dubai have led to a substantial increase in office space supply, which initially resulted in oversupply and price reductions. However, rising demand has absorbed much of this oversupply, and the current trend indicates that demand is beginning to outstrip supply, potentially driving prices upward. The hospitality sector, although still recovering from the pandemic's impact, is benefiting from events like Dubai Expo 2020, which have bolstered tourism and contributed to economic recovery. The UAE's real estate market remains fragmented yet holds significant growth potential, with key players like Nakheel Properties, Deyaar, and Aldar actively seeking to consolidate and innovate. Technological advancements, particularly in proptech, are enhancing transaction volumes and asset management, further propelling the market forward. Recent developments, such as the establishment of an integrated metal hub by AD Ports Group, underscore the ongoing expansion and diversification of the UAE's commercial real estate landscape.

Explore More

UAE Commercial Real Estate Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Current Economic Scenario

    2. 1.2 Commercial Real Estate Buying Trends - Socioeconomic and Demographic Insights

    3. 1.3 Government Initiatives, Regulatory Aspects for Commercial Real Estate Sector

    4. 1.4 Insights on Existing and Upcoming Projects

    5. 1.5 Insights on Interest Rate Regime for General Economy and Real Estate Lending

    6. 1.6 Insights on Rental Yields in Commercial Real Estate Segment

    7. 1.7 Insights on Capital Market Penetration and REIT Presence in Commercial Real Estate

    8. 1.8 Insights on Public-Private Partnerships in Commercial Real Estate

    9. 1.9 Insights on Real Estate Tech and Start-ups Active in Real Estate Segment (Broking, Social Media, Facility Management, Property Management)

    10. 1.10 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Offices

      2. 2.1.2 Retail

      3. 2.1.3 Industrial & Logistics

      4. 2.1.4 Hospitality

      5. 2.1.5 Other Types

    2. 2.2 By Key Cities

      1. 2.2.1 Dubai

      2. 2.2.2 Abu Dhabi

      3. 2.2.3 Sharjah

      4. 2.2.4 Rest of United Arab Emirates

UAE Commercial Real Estate Market Size FAQs

The UAE Commercial Real Estate Market is projected to register a CAGR of 6% during the forecast period (2024-2029)

Nakheel Properties, Deyaar, Jabal Omar, Aldar and RAK Properties are the major companies operating in the UAE Commercial Real Estate Market.

UAE Commercial Real Estate Market Report Snapshots

Commercial Real Estate in UAE Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)