The sharp fall in the price of UAE crude oil over the last 18 months continues to weigh on the UAE economy, according to RICS’ latest global commercial property survey.
However, the economy is still expected to have grown by around 3% during 2015 thanks to the diversification of output over recent years and continued investment in some major infrastructure projects.
With the oil sector contributing around 30% of economic activity in the UAE, there was some feed through to commercial property markets, and the RICS Occupier Sentiment Index record its second consecutive negative reading in Q4.
The survey also found that occupier demand decreased across all sectors, while the supply of leasable space remained on the rise.
On a globaln scale, the sector remains firm across the majority of advanced economies, with activity in both occupier and investment markets continuing to increase smartly.
However, the outlook regarding the performance of commercial real estate looks more challenging.
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