November 29, 2021

The World Stock Markets Tips & Targets, News, Views & Updates

The World Stock Markets Tips & Targets, News, Views & Updates

CARS24 signs one of Dubai’s largest ever commercial leasing deals

CARS24, India’s largest e-commerce platform for pre-owned vehicles has leased 1,000,000 sq.ft commercial facility in Jebel Ali, with a total contract value in excess of AED 40million, in one of Dubai’s largest ever leasing deals on record.

With a company value of over $2 billion, CARS24 is revolutionising the way pre-owned cars are bought in the UAE, through their next generation, ecommerce platform for used cars. The new facility will be used to expand their operations in Dubai.

“This is a milestone for us in the UAE and it will certainly be one of the highlights of our presence in this market. In just over six months we have sold 2000 plus pre-owned cars and we now want to elevate our business to the next level. Now we have such an expansive facility, this will no doubt prove to be an important turning point for our business, as we continue to build our success story in the Middle East,” Abhinav Gupta, CEO, Gulf Region at CARS24 said.

Knight Frank, the leading global real estate consultancy firm has brokered the transaction.

“The new commercial site will serve them well over the coming years and will give them the added capabilities to expand and grow their business here,” said Andrew Love, partner and head of commercial agency Knight Frank Middle East said.

The pandemic has catalysed a shift in consumer shopping habits, with many making a swap to online purchasing. Indeed, the UAE e-commerce retail market was estimated to be worth a record $3.9 billion in 2020; a 53% increase in value on 2019.

“It’s very rare that a deal of this magnitude is finalised in such a short timeframe, having been completed within 3 months and shows the professionalism of all parties involved.” said Mikhail Vereshchagin, commercial agent Knight Frank Middle East commented.

The Dubai Chamber of Commerce and Industry estimates that this figure will expand to $8 billion by 2025, hinting at a prolonged period of strong demand for warehouse space from the country’s retailers.

Prime headline office rents in Dubai have started to stabilise, however overall, rents still remain at 9-year lows, leaving occupiers firmly in the driving seat.

Knight Frank highlights that business confidence in the UAE has been a critical factor in improving conditions, with the latest PMI figures showing sustained business expansion activity for seven consecutive months, highlighting the positivity percolating through the economy as it shakes off the lingering impact of the pandemic.

Job creation rates have quickened at their fastest pace since the end of 2019 and that is helping to underpin the rise in office space requirements Knight Frank is recording. And the technology-media-telecoms (TMT) sector sits at the heart of new demand for office space, with over 22% of all new requirements in Q2 being linked to TMT businesses.

Knight Frank expects about 100,000 new jobs to be created across the UAE by the TMT, storage and transportation sector over the next five years – the most for any sector.

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