2022 is expected to see Dubai’s office capital values increase, particularly grade A space located in Dubai Financial International Center (DIFC) and Downtown Dubai, according to a new report from real estate consulting firm ValuStrat.
Approximately 48,800 sq m (535,278 sq ft) of Gross Leasable Area (GLA) of workspace is up for delivery in 2022.
Increased investor demand for office space in Jumeirah Lake Towers and Business Bay is expected.
Continued work-from-home and hybrid-work arrangements could increase office space vacancy, impacting the demand in the short term.
The report also reveals that the number of tourists is to rebound as Emirates airlines plan to increase further towards full capacity.
Read more: Dubai: 265,000 sq. ft of new office requirements in Q3
2021 performed better than forecasts as sales transactions broke previous records and capital values mostly reached pre-pandemic levels. 2022 is expected to continue to see citywide price and rent increases, but at lower, healthier growth rates, this is due to support of economic reforms and an accelerated vaccination program.
Abu Dhabi
Capital values in freehold villa and apartment communities in Abu Dhabi are forecasted to continue to see improvements, noting that the market has outperformed ValuStrat’s previous forecasts.
In terms of office spaces, high growth in Abu Dhabi’s Reem Island is forecasted.
Continued work-from-home and hybrid-work arrangements could increase office space vacancies in Abu Dhabi, impacting the demand in the short term.
