CITYSCAPE: Office rents in emirate to shoot up over next two years as supply outpaces demand.
Office rents in Abu Dhabi, which have grown about 40% during the last two years, are likely to rise further during the next two years as supply outpaces demand, property consultancy Colliers said.
"The continuous flow of new organisations keen to establish themselves in the emirate, as well the natural expansion of existing organisations against the background of benign economic conditions, serve as key demand drivers," the Boston-based company said in a report on the emirate.
About 415,000 square metres of office space is under construction, which will help almost double total office space to 850,000 square metres by 2011, Colliers said.
The firm "anticipates rents to continue to rise until substantial supply enters the market from the end of 2009 onwards".
Abu Dhabi last year introduced a 7% cap on rent rises to stem surging prices.