By Sarah Townsend
New Knight Frank report says healthy level of demand for prime office space has exerted continued upward pressure on rents
Office rents in Dubai have remained stable over the last quarter and increased marginally since last year, according to Knight Frank’s latest market report.
The real estate consultancy said prime rents were flat quarter on quarter but up 2.1 percent from the same period in 2014 with "robust" activity reported.
A healthy level of demand and low supply helped to exert upward pressure on rents, it added.
Occupier activity was in the shape of expansions, new start-ups, consolidations and lease renewals – all of which has reduced vacancy rates to around 18 percent of total completed stock, the report showed
Knight Frank cited several new office developments coming out of the ground in 2015/ 2016, including Tecom’s Dubai Design District, targeting start-ups, of which the first phase was delivered in March and completion is scheduled for year-end.
Meanwhile, the new Trade Centre office development is expected to be delivered in the fourth quarter of this year, “and will add some much needed grade A supply to the market”, Knight Frank said.
One JLT at DMCC is also expected to be delivered by the end of the year, while the forthcoming Burj 2020, launched at Cityscape 2015, is to be the world’s largest commercial tower under the current plans.
Finally, Brookfield Place in DIFC, the planned 50-storey office tower by a joint venture between ICD and Brookfield and will sit behind Currency House and the Ritz Carlton, will help to provide “much needed relief to the DIFC, which is almost at full capacity itself”.
While there are signs that economic momentum is slowing in the region, levels of activity remain robust and Dubai’s economy has continued to grow despite the drop in oil prices, the report added.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.
Sure, whatever makes you (landlords, real estate agents etc.) happy......