Office rents in Dubai are rebounding for the first time in six years, rising faster than in New York or London, Bloomberg reported.
The rise comes as global banks and businesses look to the emirate to expand into the emerging global financial hub.
The rush for office space in the emirate is on show in skyscrapers like ICD Brookfield Place, which towers 928.5 feet (283 meters) over the financial district, Bloomberg said, adding “90 percent of its 1.1 million square feet of office and retail space is now taken or under offer, with a long wait list for the rest.”
ICD Brookfield Place’s tenants include UBS Group AG, Israeli fintech firm Rapyd and Pernod Ricard SA, which relocated staff from Hong Kong.
“Demand for space in the skyscraper and across Dubai is surging as the emirate attracts more wealth and expats due to its nimble response to the pandemic and relatively easy access to visas,” Bloomberg reported.
Dubai’s real estate turnaround shows a significant shift in the emirate’s commercial property sector, which was the most affected during an oil-induced property slump in 2014.
“Prime office rents rose 7 percent in the year through June, while grade A space increased 7.2 percent. At the other end of the spectrum, lower grade workspace rose 3 percent,” according to American real estate company CBRE.
Prime rents in London and New York rose 1.4 percent and 3 percent or less, respectively according to CBRE.
Additionally, Dubai was able to “lure employees back to their desks,” Bloomberg said, unlike New York and London, after the global pandemic.
“Dubai is different because generally people drive and most live within half an hour of their workplace so there’s a greater tolerance to commuting,” ICD Brookfield’s Devereux told Bloomberg.
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