MR. GIRISH GURNANI, an ace real estate expert in the field for over two decades, talks to MONEYPETROL.COM on the property sector, the boom and the challenges and about the group he is leading. Here are the excerpts from the interview given to the Editor-in Chief.
How do you see the UAE real estate market evolving over the next 3–5 years?
The UAE’s real estate market is poised for steady expansion over the next three to five years. Key drivers include Dubai’s ambitious infrastructure developments—such as the Al Maktoum International Airport expansion—which are already fueling commercial property demand and raising valuations especially in Dubai South.
Strategic economic diversification under the Economic Vision 2030 further supports long-term resilience and investor appeal.
The commercial boom is also generating spillover growth in residential segments, propelled by high rental yields, tax advantages, and investor-focused schemes like the Golden Visa.
Some more reasons attributed to the evolution happening day by day are as follows :
- Accelerated growth in commercial and industrial assets amid Dubai’s infrastructural push.
- Sustained real estate demand anchored by economic diversification and visa incentives.
- Rising investor confidence from both domestic and global capital flowing into UAE’s real estate.
2. Which segments (luxury, affordable, mixed-use, commercial, industrial) are driving demand in the RG GROUP projects?
Within RG Group’s project portfolio, commercial and industrial segments are powering demand.
The commercial sector is thriving, with investor interest from India, UK, and Germany heightening, driven by rental yields, Golden Visa benefits, and favorable tax structures.
The industrial/logistics segment is advancing rapidly, especially in warehousing solutions. RG Group highlights intelligent, automated warehousing as a transformational area.
Warehouse scarcity in Dubai has prompted businesses to consider territories like Abu Dhabi, Sharjah, and RAK—regions where RG Group is positioned to assist with relocation and tailored solutions.
3. As a real estate company, what made you specialize in industrial and commercial property sector?
RG Group’s foundation in 2008 paved the way for over 15 years of expertise in commercial, industrial, and retail real estate. The Group has expanded with complementing ventures in brokerage, investments, interiors, development, and maintenance, forming a comprehensive ecosystem to support these sectors.
Key motivations include:
- Leveraging Dubai’s growth as a global business hub to capitalize on industrial and commercial opportunities.
- Offering full-spectrum services—from leaseback transactions and mergers to contracting and maintenance—enhancing capability and client value.
- Addressing unmet market demand, such as warehousing shortages, by providing custom industrial solutions across the UAE.
4. How has Dubai’s and Abu Dhabi’s population growth and visa reforms influenced commercial and industrial projects development?
The substantial population influx in Dubai—over 25,700 new residents in Q1 2024 alone—directly fortifies real estate investments in both commercial and residential sectors.
Additionally, visa reforms, including the Golden Visa and multi-entry tourist visas, have significantly improved the UAE’s attractiveness to global talent and investors.
Impacts include:
- Elevated commercial property demand, driven by business activities and workforce expansion.
- Strategic government programs like the Quality-of-Life Strategy 2033 and Emirates’ visa reform enhancing regional allure.
- Boosted industrial development to support heightened logistics and supply chain needs.
5. What are the main challenges you face in the current UAE real estate landscape viz-a-viz industrial and commercial properties?
Key challenges in the current landscape include:
- Warehouse shortage in Dubai, prompting businesses to explore options in Abu Dhabi, Sharjah, and RAK—a shift that demands strategic relocation support.
- Market volatility and regulatory shifts, necessitating careful navigation around policy changes and ensuring consistent returns.
- Tenant management and operational costs, such as maintaining occupancy and handling overhead, which remain critical in maximizing ROI.
- What types of projects (commercial and industrial) are you planning for the next 5–10 years?
While RG Group has not publicly detailed a specific roadmap, existing insights suggest:
- Industrial warehousing development: Including smart, tech-enabled, eco-conscious facilities.
- Expansion beyond Dubai: Facilitating warehouse and logistics operations in Abu Dhabi, Sharjah, and RAK.
- Commercial projects in infrastructure hubs: Targeting areas like Dubai South and regions surrounding airport expansions.
- Leaseback, contracting, and brokerage ventures: Deepening existing services across industrial and commercial verticals.
