Rentals touching sky high and full-scale occupancies have boosted efficiencies and values across the commercial property sector in 2015. There’s absolutely no limit to how ‘hot is hot’ when it comes to the commercial real estate sector. Some experts and analysts predict a modest 2016 whereas others say that the commercial real estate sector would be sizzling hot. So, whether you are interested in a LLC Company setup Dubai or a Freezone business setup Dubai or want to start a business in UAE, and want to invest in commercial real estate, now’s the time!
Let’s see what are going to be the hottest trends for 2016.
The Blurring Lines of the Concept of Suburbs. Earlier, everyone preferred staying in the urban centre. Then the concept changed and people now preferred staying in the suburbs and commuting to their offices. These suburbs were the satellite towns which were more affordable to stay in, were strictly residential yet offered the benefits of being in close proximity to a bigger urban centre. The decade ahead will see a further blurring of lines between suburbs, urban centres and big cities. The focus will be on walkable locations with good public transportation and other amenities that people are used to.
Back to the Basics. Technology, access and easy availability of market data/trends have given rise to the hope that real estate investing can be done by a simple algorithm. Thus, it has now become simpler to just invest in commercial property too which was once considered to be the domain of only experts or well-acquainted individuals. With easy data access, everyone can invest in commercial property and reap the benefits.
Office Space Redefined. The open office is not new but what is new is that this concept will be taken to a new level altogether in 2016. Office will become more fun, productivity will rise further and there will be less cases of absenteeism. From open cafe-style lounges to gourmet food to outdoor gathering and meeting spaces, the office space of 2016 will rock.
Crowdfunding, and that too in the Commercial Space. Crowdfunding is here to stay and will touch the commercial real estate space too. With exponential growth in the crowdfunding sites such as RealtyShares and Realty Mogul, they just closed on the largest crowdfunding loan ever in the history. The crowdfunding trend will continue to heat up in the coming year for sure.
Smart Buildings will become the new normal. There will be more environmentally sustainable buildings and cities will adopt smart technologies for that. LEED buildings, BEMS adoption and by taking to the Internet of Things (IoT), commercial smart buildings will become the highest users of IoT. Smart cities will use more than 1.6 billion connected things. The main benefit of a smart and an unsmart building lies in the value that it gives back to the environment.
Designs will continue to rule. In 2016, the focus will firmly be on designs that will leave you mesmerized as well as connect to the roots. The natural elements will be area of attention in commercial spaces – design that will be inspired by natural elements and construction that will combine smart design while using natural and environment-friendly materials.
The New Investment Option. Leave out stocks and bonds, cash, commercial real estate will be the new king. 2016 will see a huge investment in commercial real estate as it is predicted to touch institutional investor allocation threshold of 10 percent. This will emerge to be the favourite investment option.