By Staff writer
New report says 800,000 sq m of new office space is expected to be completed over the next three years.
Dubai’s office market continued to see strong demand for prime commercial property, resulting in declining vacancy rates in key locations, according to real estate consultancy firm CBRE.
Its Q1 2016 Dubai MarketView said demand is currently outstripping supply in TECOM and DIFC, encouraging a new wave of development.
Around 800,000 square metres of new office space is expected to be completed over the next three years.
This includes the ICD Brookfield Place at the DIFC which will comprise around 1.1 million square feet of Grade A offices and high quality retail.
CBRE said there has also been sustained demand for new freezone licences, with DMCC currently experiencing positive take-up rates, driven by demand for smaller offices spaces from start-ups and SMEs.
Mat Green, head of Research & Consulting, CBRE Middle East, said: “Overall, the availability of good quality single held offices remains tight, with a surge in pre-leasing activity over the last 24 months stripping a large portion of the recently delivered and upcoming office space from the market before completion.”
Average prime CBD office rentals saw some marginal growth during the quarter with rates rising to AED1,916 per sq m per annum, reflecting the sustained demand for well-located and good quality office products.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.