The residential market has experienced significant pressure owing to an increase in supply. Cost conscious residents have a wide range of product to choose from and as such landlords and developers are providing increased incentives for tenants and buyers, to include rent-free periods and favorable payment structures.
Consolidation and workplace optimisation continue to drive occupier demand in the office sector. Remote working and a greater application of technology has is increasingly influencing operating metrics for property owners, with shorter lease terms, “plug and play” or ready to move options and flexible floor plates designed to attract a wider customer base.
Dubai’s Food & Beverage industry is in the midst of a significant transformation with online disruptors changing how often consumers dine out. Over the course of 2019, several major F&B market players have cited high rents often incorporating a turnover provisions as a key challenge for the sector. Meanwhile with an increase in competing supply, tenants are often in a dominant position when negotiating incentives such as rent free periods and capital contributions; in particular, for unique, well positioned and quality F&B concepts that can drive footfall.
Logistics and 3PL firms are expected to be among the primary drivers of demand for industrial units in the future. One of the critical success factors in the coming years will be the use of robotics or automation to improve supply chain efficiencies and to gather information on where things are and where they need to be. This autonomous tracking is expected to make the logistics sector more efficient, releasing information from silos and reducing bottlenecks.
Robin Williamson, Head of Real Estate, Deloitte Middle East commented: “Dubai’s real estate market is not without its challenges and falling capital and rental values, particularly in the residential sector, generally translate into lower returns for certain developers and investors. The flip side to this is that Dubai is becoming a much more affordable location, for a wider target audience, the key to success will be translating this into actual demand”.
About the Middle East Real Estate Predictions report, Dubai 2020
A Deloitte initiative that was produced by undertaking in depth market research, extensive consultations with industry stakeholders and analysis of data from sources that include the Economist Intelligence Unit (EIU), MasterCard, Oxford Economics, Reidin and STR Global. The research comprised an assessment of the trend performance and future prospects for Dubai’s hospitality, residential, retail, office and industrial markets.
To discuss the report in more detail please contact Oliver Morgan.
– Ends –
Contact:
Nadine El Hassan
Public Relations Regional Leader
Deloitte Middle East
Tel: +961-1-748 444
Email: [email protected]
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About Deloitte & Touche (M.E.):
Deloitte & Touche (M.E.) (DME) is a licensed member firm of Deloitte Touche Tohmatsu Limited (DTTL) and is a leading professional services firm established in the Middle East region with uninterrupted presence since 1926. DME’s presence in the Middle East region is established through its affiliated independent legal entities which are licensed to operate and to provide services under the applicable laws and regulations of the relevant country. DME’s affiliates and related entities cannot oblige each other and/or DME, and when providing services, each affiliate and related entity engages directly and independently with its own clients and shall only be liable for its own acts or omissions and not those of any other affiliate.
DME provides audit and assurance, tax, consulting, financial advisory and risk advisory services through 25 offices in 14 countries with more than 3,300 partners, directors and staff. It has also received numerous awards in the last few years which include, Middle East Best Continuity and Resilience provider (2016), World Tax Awards (2017), Best Advisory and Consultancy Firm (2016), the Middle East Training & Development Excellence Award by the Institute of Chartered Accountants in England and Wales (ICAEW), as well as the best CSR integrated organization.
The information contained in this press release is correct at the time of going to press.
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Nadine El Hassan
Senior Manager l Brand & Communications
Deloitte & Touche (M.E.)
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© Press Release 2020
