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Shift Towards Purchasing Trend in Dubai Real Estate Market Fuels Strategic Changes in Corporate Property Strategies
Apr 3, 2024
Shift Towards Purchasing Trend in Dubai Real Estate Market Fuels Strategic Changes in Corporate Property Strategies Dubai
By   Internet
  • City News
  • Dubai Property
  • Dubai Real Estate Market
  • Housing Trends
  • Property Strategies
Abstract: The transformation of Dubai's real estate market reflects a reassessment of property decisions by businesses. Against the backdrop of rising rents, more and more companies are beginning to realize the stability and long-term benefits that owning their properties may bring. This trend heralds the future direction of the Dubai real estate market, which will continue to influence decisions made by businesses and investors.

The Dubai real estate market has shown a trend of continuous rent increases in recent years, sparking interest among businesses in property acquisition, shifting gradually from leasing to purchasing. This shift echoes the trend of Dubai residents buying homes in the past few years, as they also face escalating rental pressures. In fact, this trend has become a major characteristic of the residential real estate market in Dubai.


In the office and industrial sectors, an increasing number of companies are recognizing the value of owning their properties rather than relying solely on leasing. This trend is particularly common among local or regional businesses, as multinational corporations typically prefer leasing over owning real estate. Motivations for companies shifting towards property ownership include avoiding rent increases, ensuring stable space supply, and meeting their evolving needs.


Shift Towards Purchasing Trend in Dubai Real Estate Market Fuels Strategic Changes in Corporate Property Strategies

hkhaleejtimes


In the office market, both transaction volume and sales prices are showing an upward trend, especially in key areas such as Business Bay, Jumeirah Lakes Towers, and Barsha Heights. Due to the relatively limited supply of stratified office space, companies face some challenges when choosing properties, but demand for small office units continues to rise.


Conversely, in the industrial and logistics sectors, many occupiers are beginning to prefer purchasing warehouses instead of leasing. This is because purchasing warehouses can lower long-term costs, increase flexibility, especially considering the continuous rise in rents and subletting costs.


Despite the continuous rise in rents, some companies still choose to continue leasing. This decision may be based on the need for flexibility and the relatively competitive rental rates in the UAE compared to other mature markets. However, whether buying or leasing, companies are evaluating various factors, including long-term costs, space requirements, and the dynamic changes in the real estate market.

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Shift Towards Purchasing Trend in Dubai Real Estate Market Fuels Strategic Changes in Corporate Property Strategies
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