Dubai office costs plummet 34% in 2009

GETTING CHEAPER: Office occupancy rates in Dubai dropped 34 percent in 2009, a new report has found.

Although office occupancy costs in Dubai dropped by 34 percent last year, the emirate remains the most expensive location in the Middle East, according to the latest report from DTZ Research.

Occupancy costs throughout the region overall declined by an average of 12 percent in 2009.

“Occupiers throughout the region are taking advantage of the current market to demand increased leasing incentives from landlords,” said Nick Witty, DTZ’s chief operating officer for the Middle East. “These include more flexible lease terms, extended rent-free periods and that office space should be fully or partially fitted out.”

Dubai is eleventh on the global rankings for cost per workstation, at $14,520. Abu Dhabi is just behind its fellow emirate in 12th place, with Doha in 17th place.

The cheapest location in the region, according to DTZ, is Saudi Arabia’s Al Khobar, where annual occupancy costs per workstation come in at $3,930.

From a global perspective, London’s West End is the most expensive location, displacing Tokyo and jumping above Paris and Hong Kong. London workstations cost an average $21,420, the report said.

For the future, growth in occupancy costs is expected to be muted in the next three years, and DTZ expects Middle Eastern costs to either stabilise or decline in 2010.

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READERS' COMMENTS

Watchman
Posted by Mark, dxb, uae on Tuesday 9 February 2010 at 23:26 UAE time


You have taken the agent for a ride when you could have acted honourably and negotiated the rent with the landlord and kept the agent in the loop. If everybody did this then Dubai will spiral into an unethical mess. You needed the agent to find the property and then you acted like a common thief.

Illegal
Posted by Property Guru, Dubai, UAE on Tuesday 9 February 2010 at 10:12 UAE time


It's misconduct on part of watchman, he indulged into an activity that he is not licensed to do. However, you encouraged it for the lure of saving commission.

Caution : If you want your issues to be legally addressed trust only authorized persons having trade license and who give you official receipts for the transaction.

Can Someone Help me
Posted by Naveen Shetty, Dubai, UAE on Monday 8 February 2010 at 10:46 UAE time


I was searching for an apartment in Dubai and during my search I found very unusual incident. I was directed by one real estate agent to an apartment and when I went to view the apartment the Watchman of the building approached me with a quite interesting offer. He told me not to go back to the agent but to lease the apartment directly from the owner. I am in dilemma now whether I have done the right thing and looking forward to hear some views on the same.

The offer which was given by the Agent was – X amount of Rent and 5% Commission and 5% Deposit

The offer given by the watchman was – X amount minus 5K Rent, 5K Cash and 5% deposit (No commission)

It is very clear that I am saving some money on rent but I am not very sure what happens to Aed. 5000 which is paid in cash. I suspect the Watchman along with Owners employees/agent is cheating the employer by taking this money as I did not get the receipt for the Aed 5000 paid by me. Please let me know what shall I do?

1.Is this practice normal? Whether anyone one of you have come across similar circumstances?

2.If the monies are siphoned by watchman/owner’s employee/agent without the knowledge of the owner, then this practice is illegal.

3.What course of action I should take? Whether I should inform this to any authorities/owner/police?

Hope someone will be able advice and solve my doubts.

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