Real estate research group “Redden” report announced that the percentage of commercial real estate offices that have been built in Dubai over the past five years, reached 4%. This low number is due to the large supply of surplus in the sector after the global financial crisis in 2008.
The report also noted that the recovery of the real estate market and the establishment of many new companies in various sectors and economic growth that has occurred after the crisis will contribute to the launch of real estate projects and commercial units in the emirate, especially with the decline in prices of residential units in the secondary market in order to benefit from the observed increase in demand.
Several real estate companies withdrew liquidity from the secondary market due to the high number of real estate projects on the map, which led to a decline in its activities by 26% per year.
It is worth mentioning that JLL group anticipated that the commercial real estate market will witness a significant increase in supply during the coming two years while the residential and hotel real estate market will fall significantly.