The government of Dubai will put the spotlight firmly on the commercial real estate market as it looks to continue recovering from the global recession, emirates247.com reports.
In a new report, entitled ‘The Global Financial Crisis – Lessons Learned’, the Department of Finance (DoF) says that shopping centres, hotels and office space will play key parts in the UAE region’s post-recession strategy.
Property firm Jones Lang LaSalle (JLL) believes that the commercial real estate market will continue to grow after showing impressive progress towards the end of 2013. It predicts that office stocks in Dubai will reach 8.6 million square metres in 2016, marking an increase of 16 per cent from 2014.
JLL’s experts also believe, however, that market growth and the resulting optimism could cause over-development, which could in turn lead to a bubble if the situation isn’t managed carefully.
According to dailystar.com.lb, the report also highlighted the government’s concerns over rental prices in the city. In it, the DoF said that it would look to ensure the market is kept within reach of the region’s businesses.
In December 2013, the Prime Minister of the United Arab Emirates (UAE) and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, issued a decree to limit the percentage by which property rent can increase upon the renewal of a tenancy contract.
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