Commercial real estate has a very wide scope, from selling and leasing office space, retail space, food & beverage and industrial space. This requires a high level of expertise from commercial brokers in the city.
Emrah Yar has been a commercial real estate specialist for 3 years and has recently joined Allsopp & Allsopp to head up their Commercial sector.
- How are you finding the commercial market at the moment?
The commercial real estate market is always moving. There are new companies coming in and existing companies upsizing or downsizing their business and office space.
Dubai is a hub for business and businesses operating in countries where there is a slight downfall in the economy tend to look at Dubai as a safe option to operate.
I believe companies around the world see that setting up in Dubai is taking the next step in expanding their business to a higher level.
- What made you move to Allsopp & Allsopp to start up their commercial platform?
The Allsopp & Allsopp brand in Dubai is hugely prominent and the successes of the company make it a very attractive place to work and continue to drive my career forward. They won Best Brokerage of 2018 as awarded by Property Finder and I wanted to work for the best!
After meeting with Carl and Lewis and witnessing firsthand the passion and excitement they both have for the industry, I knew Allsopp & Allsopp was the right fit for me. With their support I believe we can build the commercial sector of the business to become a huge success.
- Are there any apparent trends you are noticing?
A trend in the commercial market that has developed over the last 3 years is the rise in enquiries for ecommerce space as a result of the world becoming more tech savvy. Many more applications are coming to fruition and with this, certain retail companies are switching their business to ecommerce and looking for alternative working spaces.
Satellite kitchen space has become increasingly popular as food delivery applications have grown immensely in Dubai. Restaurants and larger businesses such as Deliveroo and Zomato have opened spaces to build kitchens purely for delivery purpose.
- How do you think EXPO 2020 will affect the commercial market in Dubai?
Companies will be coming to Dubai as part of the Expo and may not already be established in the city, however, may be encouraged to set up by the vibrancy Dubai offers and its strong hub for business worldwide.
No one can predict the future, but the commercial market could well see a pick up as a result of interest sparked from Expo 2020. In my opinion, the commercial market will be affected more by Expo 2020 than the residential market.
- Have you noticed any enquiries for co-working spaces?
Co-working spaces have been highly sought after in the last year or so. Many large companies in Dubai have been enquiring about opening their own business centers to offer people this new office concept. Almost every commercial building in Dubai has a co-working space within it.
Co-working spaces have become increasingly popular with millennials worldwide and with more millennials moving to the city we have seen more enquiries to this modern working space.
A startup company can benefit hugely from a co-working space because of the lower rental prices. Companies who are looking to downsize are also looking at the co-working space as an option.
- What industry are you seeing the most enquiries from?
There is movement across all industries across Dubai, but ecommerce is certainly one that stands out to me.
Ecommerce has soared over the last 3 years in Dubai. I have definitely seen an increase in enquiries from companies within the ecommerce industry, even more so from food delivery apps as I mentioned earlier. A number of fashion brands are also moving online and are looking for larger working spaces.
- Have the commercial property prices stayed in line with the residential prices?
There has been a decline in pricing across the real estate industry as a whole and the commercial market has been no different.
Business Bay, Downtown and DIFC have witnessed only a slight decline in prices but, have held their value due to the location and the demand for office space in these areas. Larger companies are always very interested in commercial space in the more prestigious areas of the city as they strive to be at the forefront of the business world.
- Are more people buying or renting commercial space?
The commercial market of Dubai is definitely more of a leasing industry with many startup companies looking to lease office space to begin their business journey.
On the other hand, the large-scale investors looking to buy commercial property will get more of a return on investment as companies tend to rent out commercial spaces for a longer amount of time than say, a residential property.
Labour camps have become an increasingly popular investment option over the past 5 years. The return of investment can be as high as 12-15%. The stability of the tenant can be measured by the construction company’s projected construction time and the number of projects they have in Dubai. Construction could last as long as 3-5 years making this a very sound investment option.