Dubai’s real estate sector remains stable despite global and regional economic challenges as the last quarter of the current year winds down, says Matthew Green, Director and Head of Research, CBRE Middle East.
He indicates that occupancy rates of real estate units expanded in the fourth quarter of the year especially in areas where prices are affordable.
Furthermore, he reveals that rents remain unchanged year-on-year, adding that his company expects higher supply of real estate units over the next two years.
According to Green, available office space supply reached 8.5 million square metres compared with 3m sqm in 2007.
A CBRE report projects that demand on high-quality offices at individual-owned towers will remain good, driven by stronger growth of the private sector in Dubai.
The report also indicates that Dubai’s hospitality sector has been flexible and has managed to adapt to volatile regional and global conditions.
It notes that Dubai welcomed approximately 10.5m tourists in the first nine months of the current year compared with 9.6m in the same period of last year.
Despite the surge in the number of tourists and visitors, occupancy rates at the emirate’s hotels dipped by one per cent to stand at 77 per cent as room supply continues to rise.