Abu Dhabi's Office Market YTD: Rising Demand and Prime Locations

Tecom Group has made headlines with its substantial $463 million investment to acquire and develop key commercial and industrial properties in Dubai. This strategic move includes acquiring two office buildings in Dubai Internet City and a significant land parcel in Dubai Industrial City from Dubai Holding Asset Management (DHAM). Additionally, Tecom will develop six new office buildings in Dubai Design District (d3) to cater to the burgeoning demand from the design, fashion, and creative sectors. This development underscores Tecom's commitment to enhancing Dubai's commercial real estate market and supporting its growth prospects.Tecom Group's Acquisition of Two Grade A Office TowersOne of the cornerstone elements of this investment involves acquiring two grade A office buildings in Dubai Internet City from DHAM for Dh420 million. These properties, offering a gross leasable area of 334,000 sq ft, are highly occupied and house esteemed regional and international tech companies. The high occupancy levels and premium tenant mix indicate strong, stable returns for investors, making this a highly attractive investment proposition.Moreover, Tecom's acquisition of 13.9 million sq ft of industrial land in Dubai Industrial City for Dh410 million from DHAM is a clear signal of confidence in Dubai's ongoing economic growth. This expansion opens up new opportunities for businesses seeking premium industrial spaces, further enhancing Dubai's appeal as a global business hub.Dubai Design District's Dh689 million Investment A significant aspect of Tecom's strategy involves Dubai Design District (d3), a subsidiary of Tecom Group, acquiring 629,000 sq ft of gross floor area for Dh136 million as part of phase two of the d3 Design Quarter development. Additionally, Tecom will invest Dh689 million to develop six grade A office buildings with a gross leasable area of 503,000 sq ft, with completion targeted by 2028.This development is driven by strong demand from the design, fashion, and creative industries, highlighting a growing market need. The creation of high-quality office spaces in d3 is expected to attract a wide range of creative businesses, further cementing Dubai’s reputation as a center for innovation and design.Why This Investment Matters & What This Means for Dubai's Business Landscape Tecom Group’s strategic investment reflects a profound confidence in Dubai's commercial real estate market. For investors, the acquisition of high-occupancy properties in prime locations like Dubai Internet City and the development of new office spaces in d3 offer promising returns and long-term value. The focus on expanding industrial space in Dubai Industrial City aligns with broader economic trends, supporting the city's role as a logistics and manufacturing hub.From a business perspective, the influx of new, high-quality office spaces caters to the increasing demand from sectors that are pivotal to Dubai’s diversified economy. The design, fashion and creative industries, in particular, will benefit from state-of-the-art facilities, fostering an environment of creativity and innovation.Moreover, Tecom's investment aligns with Dubai's vision to be a leading global city for business, tourism and innovation. By enhancing the commercial real estate landscape, Tecom is not only supporting current economic growth but also paving the way for future opportunities. This strategic move positions Dubai as an attractive destination for international companies looking to establish or expand their presence in the region.Tecom’s CEO, Abdulla Belhoul, emphasised that this "ambitious Dh1.7 billion ($463 million) strategic acquisitions and development plan will capitalise on the unique opportunities that Dubai’s commercial real estate market offers.” This statement encapsulates the essence of Tecom's investment strategy: leveraging Dubai’s strengths to create value and drive sustainable growth.In conclusion, Tecom Group's $463 million investment is a transformative step for Dubai's commercial property market. It offers robust opportunities for investors and businesses alike, reinforcing Dubai's status as a premier global business hub.Are you looking to invest in Commercial Property in Dubai? Browse our portfolio.  

Since the start of 2024, Dubai's real estate market has remained vibrant, with a total of 31,206 transactions recorded. These transactions amounted to a significant total worth of AED 93.93 billion as per data from DLD.The transactions included the sale and purchase of 2,513 buildings and 3,313 plots of land, reflecting sustained activity and interest in both residential and commercial properties across the emirate.We are seeing investors continue to show confidence in Dubai's real estate sector, drawn by its strategic location, robust infrastructure and diverse range of property offerings. The market's resilience and ongoing developments indicate positive momentum for the remainder of the 2024.Merging of Nakheel & Meydan Under Dubai HoldingRecently, HH Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, announced that two of the largest developers, will be merging under the ownership of Dubai Holding.We at CRC believe that by joining forces, Meydan and Nakheel can leverage their respective strengths to optimise resources, streamline processes and implement best practices across all stages of project development. This strategic consolidation brings together two prominent entities renowned for their expertise and innovation in urban development.Furthermore, the combined wealth of experience and knowledge from both entities is expected to catalyse innovation in design, construction and sustainability practices.Collaborative efforts may yield groundbreaking solutions for urban challenges, enhancing the livability, functionality and aesthetic appeal of Dubai's built environment.Commercial Real Estate ForecastsThe commercial real estate market is forecasted to witness continued growth, particularly in sectors such as hospitality, F&B, health and wellness and the industrial market.We at CRC hope to see an increase of new office supply entering the market by developers this year, to cater to the high demand we are witnessing, as Dubai remains a preferred destination for regional and international businesses seeking expansion opportunities.

In an exciting announcement, KEZAD (Khalifa Economic Zones Abu Dhabi) has set the stage for significant growth and innovation with its latest revelation of new warehousing capacity. The move is poised to revolutionise the logistics landscape, providing businesses with enhanced storage solutions and streamlined supply chain operations. Let's delve into the details of this groundbreaking development and its potential implications for the industry.In a significant move to meet the growing demand for warehousing and industrial facilities, KEZAD Group, the leading operator of integrated economic zones, has announced the commencement of a massive development project. With a substantial investment of AED 621 million, KEZAD Group is set to add more than 250,000 square meters of pre-built industrial and logistics facilities by the end of 2025. This ambitious undertaking is poised to enhance the group's total warehousing capacity by an impressive 43%, solidifying its position as a key player in the economic development of the emirate of Abu Dhabi.Meeting Market Demand:The decision to embark on this substantial investment comes in response to the robust demand for warehousing and pre-built facilities across both free zone and domestic industrial areas in Abu Dhabi. As businesses continue to evolve and expand, the need for modern, scalable and strategically located storage solutions becomes paramount. KEZAD Group's commitment to meeting this demand reflects its dedication to supporting businesses in their growth journey and contributing to the economic vibrancy of the region.Project Highlights:Investment Breakdown: The AED 621 million investment signifies KEZAD Group's confidence in the economic potential of the region. This substantial financial commitment underscores the group's belief in the long-term growth and sustainability of Abu Dhabi's industrial and logistics sectors.Warehousing Capacity Expansion: The construction project aims to deliver more than 250,000 square meters of additional warehousing capacity. This expansion is strategically distributed across two key areas, including over 97,500 square meters in Khalifa Industrial Area (KEZAD Al Ma’mourah A & B) and more than 153,000 square meters in ICAD 3 (KEZAD Musaffah). The careful selection of these locations ensures accessibility and convenience for businesses operating in different sectors.Timeline for Completion: With a deadline set for the end of 2025, KEZAD Group is working diligently to bring these new phases online promptly. The accelerated timeline emphasises the group's commitment to providing timely solutions to businesses in need of modern and efficient warehousing facilities.Economic Impact:As the largest operator of integrated economic zones, KEZAD Group's expansion initiative is not only about increasing warehousing capacity but also contributing to the overall economic development of Abu Dhabi. The project is expected to generate employment opportunities, attract investments and facilitate smoother trade operations, further solidifying Abu Dhabi's position as a hub for commerce and industry. 

Sharjah is rapidly emerging as a dynamic hub for investors and entrepreneurs alike. Boasting a strategic location and a steadily growing economy, the new Sharjah area is unveiling a plethora of opportunities for those seeking to capitalise on its commercial market. In this article, we will delve into the key trends shaping Sharjah's business landscape and explore the enticing prospects that await both investors and entrepreneurs as highlighted by Amit Vora, Manager of CRC Property Sharjah.Opportunities for InvestorsEconomic Growth and Strategic Location: Sharjah's economic growth has been nothing short of impressive, fueled by diverse sectors such as manufacturing, logistics and tourism. Its strategic location as a gateway between the East and West positions it as an attractive investment destination. Investors can tap into this burgeoning economy to yield substantial returns.Investor-Friendly Policies: The Sharjah government has implemented a series of investor-friendly policies, creating an environment conducive to business growth. These initiatives aim to streamline processes, reduce bureaucracy and provide a supportive framework for businesses to thrive. This commitment to facilitating ease of doing business is a key driver for investors considering the region.Commercial Real Estate Initiatives: The commercial real estate sector in Sharjah is experiencing a renaissance, thanks to the government's strategic initiatives. With a focus on creating vibrant business districts, the government is actively attracting new businesses by offering competitive incentives. This includes tax breaks, reduced licensing fees and other perks designed to entice investors to set up shop in Sharjah.Launch of Mega Projects: The launch of ambitious projects like Aljada and Tilal City has injected a new wave of energy into Sharjah's commercial market. These mega developments not only enhance the city's infrastructure but also provide diverse investment opportunities. Investors can explore sectors ranging from hospitality and retail to residential real estate, contributing to the city's evolution into a modern business hub.Image: Tilal City - Sharjah Opportunities for EntrepreneursReserve Spaces for Innovative Ventures: Entrepreneurs and project owners are encouraged to reserve spaces within the new Sharjah area to bring their innovative ventures to life. Whether it's a tech startup, a boutique retail concept or a service-oriented business, the city welcomes diverse ideas that contribute to the region's development.Enhancing Quality of Life: The Sharjah government is actively seeking entrepreneurs who can contribute to enhancing the quality of life for residents. From innovative healthcare solutions to sustainable living initiatives, entrepreneurs have a unique opportunity to make a positive impact on the community while building a successful business.Government Initiatives for Startups: Recognising the importance of startups in driving economic growth, the Sharjah government has introduced various initiatives to support entrepreneurs. This includes funding programs, mentorship opportunities and access to shared workspaces, creating an ecosystem where new businesses can flourish.ConclusionIn conclusion, Sharjah's commercial market is on an upward trajectory, presenting a tapestry of opportunities for both investors and entrepreneurs. The confluence of a growing economy, investor-friendly policies and visionary projects make Sharjah a compelling destination for those looking to be part of a thriving business landscape. As the city continues to evolve, savvy investors and forward-thinking entrepreneurs stand to reap the rewards of being early contributors to Sharjah's economic success.

Abu Dhabi, the capital of the United Arab Emirates, is experiencing dynamic shifts in its commercial property market. From a surge in demand for retail options to the strategic inclusion of Al Reem under ADGM and a growing interest from financial institutions, the landscape is evolving rapidly. This article delves into the current trends shaping Abu Dhabi's commercial property market.Retail Boom in Prime LocationsThe demand for retail spaces is witnessing a significant uptick across Abu Dhabi, with particular hotspots being Al Reem, Al Raha and Saadiyat. The attractiveness of these locations is not only due to their prime positioning but also hinges on the permissibility of licensing. Businesses are keen on securing spaces in these sought-after areas, recognising the potential for high footfall and lucrative opportunities.Upscale malls, synonymous with luxury and high-end retail, are emerging as focal points for businesses. The allure of these malls, such as those on Saadiyat Island, is drawing retailers who seek to capitalise on the affluent consumer base that frequents these establishments. The demand for retail space in such malls is indicative of Abu Dhabi's growing reputation as a hub for diverse commercial ventures.Al Reem's ADGM Inclusion and Licensing ImplicationsAl Reem Island's recent inclusion under the Abu Dhabi Global Market (ADGM) has brought about a noteworthy shift in the commercial property landscape. The implication is that the applicable licenses for businesses in Al Reem are now exclusively under ADGM FZ. This regulatory adjustment could potentially influence inquiries for both retail and office spaces in the area. Businesses must navigate the licensing requirements and the impact of this change is something stakeholders are closely monitoring.Rise in Demand from Financial and Banking InstitutionsAbu Dhabi is witnessing a surge in inquiries from financial, investment and banking institutions. Many of these institutions are already established in the city but are seeking larger spaces with a specific emphasis on ample parking facilities. The expansion of these institutions reflects the city's growing importance as a regional financial hub. The demand for significant office spaces, especially with parking considerations, underscores the need for accommodating the requirements of these prestigious entities.Preference for Fitted Office SpacesClients in the commercial property market are displaying a clear preference for fitted office spaces or at the very least, Category A (CAT A) options. The desire for ready-to-use spaces highlights the efficiency and convenience that businesses are seeking. This trend reflects the evolving needs of tenants who prioritise streamlined processes and quick setup, minimizing downtime and operational disruptions.High Demand for Commercial VillasBeyond traditional office spaces, commercial villas are experiencing a surge in demand in Abu Dhabi. These unique properties provide businesses with a distinctive and often more spacious alternative to conventional offices. The popularity of commercial villas reflects a growing trend of businesses seeking versatile and aesthetically appealing spaces that align with their brand image.ConclusionAbu Dhabi's commercial property market is undergoing a transformative phase, driven by diverse factors such as the demand for retail spaces in prime locations, regulatory changes, increased interest from financial institutions, the preference for fitted office spaces and the rise in demand for commercial villas. As stakeholders navigate these trends, the market continues to evolve, offering exciting opportunities for businesses seeking to establish a presence in this vibrant city.