Five out of 27 locations in Dubai have seen office rents return to pre-pandemic rates, while in Abu Dhabi, the city’s best buildings continue to demonstrate rental resilience, according to the latest study by global real estate consultancy Knight Frank.
As demand for prime spaces intensifies – following the easing of Covid-19 restrictions – office rents in the UAE’s two largest business hubs have begun their return to pre-Covid levels.
The partner and head of Middle East Research at Knight Frank, Faisal Durrani, explained: “Despite the quieter end to 2021, early data from Q1 suggests a rebound in demand in Dubai, led by technology businesses that are expanding their footprints, albeit many are startups.
“To an extent, the expansion by this group of occupiers is being eroded by a number of businesses that are still reassessing their occupational strategies, many of whom are shrinking their office footprints as a result of the rise in hybrid working models, which appear to be gaining a sense of permanency, particularly amongst international blue chip and professional services businesses, as well as a handful of international banks.”
Watch the video to understand the impact of upward pressures, lack of prime stock, and more on office rents.
(Source: ArabianBusiness YouTube channel)
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