The GDP of the United Arab Emirates make an increase by 2.5 percent in the year 2018. UAE faced a decline in the real estate market over the past few years. The reason for the commercial market is the lower oil prices. However, since 2019 the commercial market is gradually recovering. The UAE’s commercial real estate market is now attracting strong investor's attention. Experts are predicting that the UAE will boom as a popular property destination after the re-scheduled Dubai Expo 2020. In 2021, investments in under-exploited assets are now gaining huge popularity.

The logistics space driven by e-commerce firms  &  the lack of existing space for serving is the demand of the strong occupiers. It is depicted that the retail property is gradually making progress at a slow pace along with the retail supply, which is expected to increase across cities by the percentage of 111 in the coming five years. When it comes to the UAE’s hospitality sector, then an increasing demand is observed with the rise of the agreements that are signed for the new constructions. It is estimated that approximately 45,00 rooms will add to the UAE commercial market in the hospitality segment by the years 2020 and 2021. According to a Mashreq briefing, the UAE's commercial real estate sector's near-term outlook remains difficult.
Mashreq Commercial Landlords in the UAE:
Mashreq briefing, the UAE's commercial real estate sector is going to face a difficult time for few years. According to research by Dubai banking major Mashreq, commercial landlords of UAE must engage closely with their tenants as the real estate industry makes a cautious and fragmented recovery from Covid-19.
The Mashreq briefing referred to an acceleration of pre-pandemic tendencies, such as a shift toward hybrid and flexible working spaces, and the fast-growing relevance of environmental, social, and governance (ESG) aspects in demand, as significant trends driving commercial real estate in the UAE. It also revealed that an increasing percentage of UAE landlords are actively making efforts to meet their tenant's evolving requirements.
With the combined issue of the pandemic situation & continuous oversupply in a few of the categories, the prognosis remains uncertain along with the reliant global vaccine rollouts, increase in travel, supply reduction, and the most important of all is the shift in business mood.
Many firms are seeking greater leasing flexibility in response to rising levels of work from home, particularly to allow for hybrid working, expanded collaboration areas, and a more comprehensive offering, according to the research.
 What Comes Next for the UAE’s Property Market?
On the strength of pent-up demand during the epidemic and a progressive regulatory environment, the UAE's property market saw record-breaking sales in the first half of 2021. Experts say that the pandemic is a growth accelerator in the commercial real estate sector globally. The United Arab Emirates also witness the same trend. In 2020, the performance of the UAE’s real estate is much better as compared to the previous records, especially in the residential segment. 2021 is the year of making progress in which the sales transactions are continuously increasing month on month as the demand rises.
Many factors contributed to the real estate market's flexibility during the epidemic period. The proactive government incentives make a significant boost to the industry. Special investor, retirement visas, golden long term, visas, reduction of the loan to value for the home purchasers to 20% are some of the governmental incentives. Low-interest rates, attractive housing prices, and competitive mortgage products are some of the factors that help a lot in supporting the commercial market. The CEO of farm properties “Firas Al Msaddi, UAE experience much better sentiments because of the build-up demand in the lockdown period. Positive trends for the villas, water-front properties, townhouses contribute a lot in uplifting the investor's spirit to invest in UAE.
Experts predict that Dubai's property industry will continue to grow in the second half of 2021, owing to visa changes, successful Covid-19 immunization program, and government initiatives to assist the economy boost the demands and limit overstock. According to analysts and specialists, the villa category is outperforming, and also favorable to boost property values by up to 5% between July and December this year.