There will be tremendous demand for offices and commercial properties in Dubai this year, due to the rising confidence in both the emirate’s economy and the real estate sector, said a report by international property agency Chesterton.

"We foresee significant growth in the commercial market during 2014 driven by bright economic prospects. Demand for office space will increase as companies move out of older offices to the ones with better quality and amenities. Furthermore, ownership of office space will also increase as rents climb higher," stated Simon Gray, the managing director of Chesterton Mena.

He pointed out that warehouses and logistics will come back into focus with expansion of airport and other logistics projects gaining momentum.

"Dubai will once again be billed as the ‘crane capital’ of the world with several mega projects in the pipeline. We expect 2014 to be another positive year for real estate sector in the UAE, Dubai in particular," he noted.

“We entered 2014 with a lot of optimism and positivity spurred by last year’s industry performance and Expo 2020 win. Medium term growth forecasts for the economy have improved business confidence as more companies plan expansion activities to take advantage of economic opportunities arising from infrastructure spending over the next five years," noted Gray.

"We expect residential market to stabilise after a rapid growth over the last year, rentals however, could still see significant growth. Developments located in secondary areas such as Dubailand are expected to see higher growth. An extension of the red line of Dubai Metro could see increases in property values across the railway route," he added.

According to Gray, the residential property market will also grow at a faster pace over the next five years as more people choose to make Dubai their home.

"The city’s high quality infrastructure and the geographical location, positions Dubai as one of the best cities in the world to live and do business," he remarked.

"The Expo 2020 win has provided just the right boost in the arm. Industry stakeholders are now convinced that the downside risks to the sector are over and the upside potential is unlimited. The market has started buzzing after a pause which prevailed before the pre-Expo2020 win era," said the expert.

“With increased economic activity we expect the office sector to stabilize after a prolonged period of limited activity. We expect an increase in demand for medium to small office units as new  businesses providing ancillary services set up or expand in the Emirate,” he added.

Dubai-based Chesterton Mena recently received the ‘Highly commended property consultancy in Dubai’ award during the recently held 2013th edition of Arabian Property Awards.

The Arabian Property Awards is part of the ‘International Property Awards’, the world's most prestigious competition dedicated to finding the best real estate professionals across the globe.

Established since 1805, Chesterton International is a multi-disciplinary property business covering residential sale and lettings, commercial and international agency with 74 international offices in the UK, UAE, France, Spain, Italy, Singapore, Russia, South Africa, Australia and Barbados.-TradeArabia News Service