Office Market
2022 Performance
- As office demand intensifies and outstrips supply, citywide office rents spike by 29% year-on-year.
- 2022 saw city-wide office occupancy rise to 87% from 78% in 2021, resulting in the absorption of 9 million sq. ft.
- Office sales market witnessed a 17% year-on-year increase in transaction volumes and a 20% increase in median sales prices.
2023 Forecast
- Office demand is expected to continue outstripping supply.
- Developers and freezones are expected to initiate the next phases of new office projects to cater to the rising demand, resulting in strong pre-leasing activity.
- Re-purposing existing retail assets and upgrading older office stock to address rising demand.
- Rising global recession fears and mass lay-offs may impact a section of international occupier demand.
Residential Market
2022 Performance
- Off-plan projects launch up by 120% year-on-year as developers capitalize on the positive market sentiment.
- 29,000 units handed over in 2022, lower than initial forecasts as supply chain issues impact deliveries.
- The pace of price rise starting to slow down. City-wide villa prices are up by 11% and apartments by 9% year-on-year.
- Affordability concerns loom as rents rise sharply. City-wide villa rents are up by 25% & apartments by 27% y-o-y.
2023 Forecast
- Transaction volumes in both the secondary and off-plan markets are expected to witness a sustained uptick in 2023 as demand continues from local and international buyers.
- Sales prices are to witness a gradual yet continued rise, particularly in prime villa and apartment districts.
- Rental rises and high occupancy levels are expected to continue in 2023, however, with a growing disparity between rents in new leases and renewals.
- High construction costs and supply chain issues are expected to impact delivery timelines.
