The Commercial Way: Dubai’s Best-Kept Investment Secret

This week, Carl sits down with James Fahey, Head of Commercial, to explore the commercial real estate market in Dubai. From investment opportunities to prime business locations, James and Carl uncover one of Dubai’s best-kept investment secrets. If you're an investor wanting to diversify your portfolio and tap into one of Dubai’s underrated real estate sectors, this episode is a must watch.

The Current Landscape of Commercial Real Estate in Dubai

The commercial real estate market in Dubai is currently experiencing a significant supply shortage. James highlights that most developers haven't been focusing on commercial spaces, inadvertently making them the "unloved child" of the real estate market. However, this is changing rapidly as developers and investors begin to recognise the market potential.

James notes that the 40% increase in new registrations of foreign companies in the region during Q1 2025, indicates a surge in demand as global businesses choose Dubai as their operational hub.

Investment Attractions in Commercial Real Estate

Investing in Dubai’s commercial real estate seems more attractive than ever. James emphasises the return on investments (ROIs) in the commercial sector, which can range between 8% to 12%, a stark contrast to residential properties. He suggests looking beyond the shiny brochures and understanding market dynamics, such as price per square foot and the area's potential for long-term growth.

The Evolution of Commercial Spaces

As work culture evolves, so do the demands on commercial spaces. Today’s businesses are increasingly looking for open and airy layouts that foster collaboration. James references a trend towards communal spaces and flexible working environments, highlighting the need for multifunctional areas that provide relaxation and networking opportunities alongside traditional office setups.

Navigating Licensing and Regulations

James shares his insights on the regulatory environment in Dubai, focusing on areas like DIFC, which offer unique benefits due to their British-based regulatory system. He explains the importance of understanding licensing and how it impacts business operations within specific zones in Dubai.

Emerging Areas and Future Trends

The conversation also highlights emerging areas James feels are hubs for investment, like Expo and Motor City, which offer exciting opportunities with their comprehensive infrastructure and connectivity. Carl also dives into flexible working spaces and how they appear as a temporary solution for many businesses, with most opting for dedicated spaces that encapsulate their identity as soon as they’re financially viable.

Team Dynamics and Achievements

James ends the podcast by shedding light on his team’s rapid growth and success in the competitive commercial real estate market. He attributes their achievements to strong relationships with landlords and a deep technical understanding of the market.

For those interested in the Dubai commercial real estate market please reach out to our experts now.

For the full Taking Care Of Business podcast episode head to our YouTube channel