For sustainable capital formation to take place, there has to be a nurturing of the SME [small- and medium-sized enterprises] sector. And that can only happen when commercial real estate is made affordable …’ Hernando de Soto.
In the past few months, there has been much discussion on the need for affordable residential units in Dubai. However, what has been missing from this debate is the issue of commercial real estate, and the prices and rents that can promote a SME enterprise, says Sameer Lakhani, managing director of Global Capital Partners.
In a Gulf News article, he wrote: "When looked at from a demand-supply gap, there appears to be a similar structural shift towards higher-end office space as has been the case in the residential space. This trend needs to be examined for the implications it has on SME formation and expansion."
According to him, in districts such as Business Bay and DWC Commercial City, the larger and more expensive commercial real estate represent 30% and this will possibly rise to 45% by 2020.