Latest news with #CommercialAgency
Web Release
2 days ago
- Business
- Web Release
Chestertons Reports 50% Surge in Commercial Leasing as Legal Reforms and Investor Confidence Accelerate UAE Real Estate Momentum
Chestertons MENA, one of the world's most established real estate advisories, has released new data confirming a sharp rise in commercial real estate activity across the UAE. The firm's Q1 2025 Market Report shows a 50.4% year-on-year increase in commercial leasing, alongside double-digit growth in villa and townhouse transactions — underscoring the powerful convergence of market demand, investor confidence, and regulatory readiness. Office leasing led the commercial sector, recording over 101,000 transactions — a 62.7% increase compared to Q1 2024 — while retail leasing saw 36,000 transactions, amounting to AED 3.4 billion. Land leasing also posted steady gains. The data points to robust corporate expansion, growing business formation, and sustained appetite for commercial space across key UAE zones. 'Commercial real estate is no longer a peripheral category — it's at the centre of the UAE's next economic chapter,' said Mohamed Mussa, Executive Director of Chestertons. 'What we're seeing is not a temporary rebound but a redefinition of the region's investment profile. From the performance of off-plan markets in Ras Al Khaimah to the legal reforms enabling long-term ownership, this is an ecosystem ready for scale.' These trends were unpacked during Chestertons' Commercial Conference held in May 2025, which brought together senior leaders across valuation, advisory, and legal practice. The panel included: Andrew Elliott , Director of Commercial Agency , Director of Commercial Agency Benjamin Cullum , Head of Valuations and Advisory , Head of Valuations and Advisory Conor Henry , Director of Valuations and Advisory , Director of Valuations and Advisory Jake Wright , Director of Investment and Advisory , Director of Investment and Advisory Michael Kortbawi, Corporate & Finance Law Expert (BSA Ahmad Bin Hezeem & Associates LLP) The conference highlighted key structural enablers: 100% foreign ownership across most mainland sectors across most mainland sectors A newly introduced 9% federal corporate tax , with 0% options for qualifying free zone income structures , with 0% options for qualifying free zone income structures Expansion of investor-friendly zones such as RAKEZ , which is set to overtake JAFZA in activity , which is set to overtake JAFZA in activity Long-term renewable lease models, digital incorporation platforms, and streamlined dispute resolution through RERA , DIFC , and specialized courts , , and Increasing demand for REITs, sale-and-leaseback structures, and institutional-grade commercial assets amid Grade A supply constraints 'Recent legal reforms have shifted the UAE from being merely attractive to being strategically compelling,' said Lawyer: Michael Kortbawi, Corporate & Finance Law Expert and panelist at the Chestertons Commercial Conference. 'Investors now have clarity on ownership, tax, and dispute resolution, along with access to digital tools and long-term visas. This is a legal framework built for global capital and long-term business planning.' Residential demand also remained strong. Townhouse and villa transactions rose 51.93% in volume year-on-year, reaching a total value of AED 76.5 billion, while apartment sales climbed 16.25% in value to AED 75.1 billion. Buyer appetite was concentrated in communities such as JVC, Business Bay, and Dubai Marina, driven by location, lifestyle, and long-term rental yield potential. Rental activity reflected similar growth. Apartment leasing was up 21.4% year-on-year, totaling AED 11.3 billion across 151,000 rental transactions, while villa and townhouse leasing rose 21% in value to AED 3.4 billion. The report attributes these trends to population growth, long-term residency programs, and a shift toward larger living spaces post-COVID. 'Across every segment — commercial, residential, leasing, and investment — the UAE is showing clear signs of structured, sustainable growth,' added Mania Merrikhi, Chief Operating Officer and Managing Director at Chestertons MENA. 'The legal infrastructure, investor protections, and macroeconomic vision are all working in tandem to create one of the world's most investible property markets.' Chestertons — established in London in 1805 and active in the UAE since 2008 — has built a deep regional presence from its headquarters in Dubai Marina. The firm's team of over 165 professionals offers services across brokerage, valuation, building consultancy, asset management, and market research, property management and investment advisory. In Q1 2025 alone, Chestertons reported a 155% year-on-year increase in MENA transactions, and is now targeting 220% regional growth by 2026.
ME Construction
18-02-2025
- Business
- ME Construction
Demand for industrial & logistics space in Dubai increased by 225% in 2024
Industry News Demand for industrial & logistics space in Dubai increased by 225% in 2024 By Rents are projected to rise by 2% per month throughout 2025 in both Abu Dhabi and Dubai, driven by tight supply and strong demand, reflecting market confidence The UAE's industrial and logistics sector experienced an unprecedented 225% surge in demand in 2024, with Dubai's new industrial space requirements reaching 40.6m sqft, according to Knight Frank's Dubai and Abu Dhabi Industrial Markets Review 2024/2025. The surging demand levels come hot on the heels of the UAE government's announcement of plans to grow the size of the nation's logistics sector from US $34.8bn to $54bn in the next seven years, through the establishment of the UAE Logistics Integration Council. Faisal Durrani, Partner, Head of Research, MENA said, 'In 2024, the UAE achieved significant economic milestones, reinforcing its position as a global trade and investment hub. The non-oil PMI reading rose to 55.4 in December from 54.2 in November, marking 48 consecutive months above 50, signaling sustained business expansion, which is translating into escalating levels of demand for industrial and logistics space. Separately, foreign direct investment and international trade also recorded substantial growth last year, further catalysing new space requirements.' Demand peaked in Q4 2024, accounting for 34% of total requirements during 2024, Knight Frank says, for 2024 as a whole, the manufacturing (19%) and logistics (18%) sectors led demand in Dubai. Retailers & traders (13%), business services (11%), and construction & real estate (11%) then followed. The sharp increase in demand is underpinning a market-wide supply shortage, with new market entrants and expansion efforts continuing to fuel rental growth. Adam Wynne, Partner – Head of Commercial Agency, Dubai explained, 'Rents and capital values have maintained an upward trajectory. Industrial & logistics rents in Dubai surged by 33% year-on-year, with vacancy rates at just 3%. While developers are working quickly to respond to the rising level of requirements, the city's 2040 Urban Master Plan promises to deliver a new wave of industrial and logistics demand. The 2040 masterplan emphasises the development of a world-class logistics network, for instance. This includes the expansion of existing ports and airports, the creation of new transport corridors, and the implementation of cutting-edge logistics technologies.' Dubai's industrial areas recorded significant rental growth in 2024, Al Quoz (Grade A): +45%, Dubai Investments Park (DIP): +48%, Dubai Industrial City: +38%, Dubai South: +26%. In Abu Dhabi, KEZAD Mussafah (ICAD) led rental growth, with rates surging 57% while Abu Dhabi Airports Free Zone (ADAFZ) recorded the highest rents. During H2 2024, new large-scale industrial and logistics projects were announced in the Al Falah area, east of Zayed International Airport. Spanning 8.3sqkm, Al Falah is emerging as a key logistics hub for the capital. The new rail network will enhance supply chain efficiency, lower transportation costs, and offer a sustainable alternative to road freight, further boosting the appeal of underutilised industrial areas, as per Knight Frank. One of the key milestones in 2024 was the completion of the Etihad Rail network, first announced in 2008. The rail network has established a cargo link between the emirates, driving increased demand around rail hubs. Knight Frank expects Etihad Rail to enhance the UAE's industrial landscape by creating connectivity between industrial zones nationwide. This infrastructure is likely to increase demand in lower-rent areas, reducing price disparities across various industrial zones. Wynne added, 'Another game-changer will be the planned relocation of the city's primary airport to Al Maktoum International in Dubai South by 2034. This includes the expected transfer of all Emirates Airlines operations which is already impacting on the availability of land for industrial and logistics use. This move, while hugely positive for the future of the city and its economy, will put further upward pressure on rents and values as Dubai continues to grapple with a shortage of prime land and high-quality warehousing.' Maxim Talmatchi, Associate Partner, Head of Industrial & Logistics, UAE, said, 'Land availability remains critically constrained, with most industrial parks operating at full capacity. The limited remaining plots are prioritising end-users, restricting speculative development opportunities. New supply is anticipated in late 2025 and beyond but is unlikely to disrupt the supply-demand balance. We expect rapid absorption of the 3.65m sqft of new space currently being developed across Dubai and Abu Dhabi which is due for delivery over the next two years.' Rents are projected to rise by 2% per month throughout 2025 in both Abu Dhabi and Dubai, driven by tight supply and strong demand, reflecting market confidence. In the investment market, further yield compression is likely, Knight Frank says, with prime net initial yields projected to fall below 8%, signalling sustained investor confidence in the sector.
