Office rents and occupancy both increased in Dubai in the first quarter of this year, a new report shows.
According to emirates247.com, the report, which was conducted by Jones Lang LaSalle (JLL), reveals that growing business activity is driving the increase in prices and occupancy. In the central business district (CBD), vacancy rates have fallen to just 26 per cent.
The improving economy is also behind the buoyant office market. Dubai’s economic growth is likely to be sustained too, as the Department of Economic Development predicts that Dubai’s gross domestic product (GDP) will rise to 4.7 per cent over 2014.
JLL’s report notes: “With occupier demand continuing to be focused on good quality space, average rents in prime locations are expected to increase with 2014 seeing a broader based recovery with increased interest in secondary office locations given the declining choice in prime locations,” reports khaleejtimes.com.
The report adds that more companies, including multinationals and startups, will be looking for office space in Dubai after Expo 2020, as it’s expected to create around 227,000 jobs. This means the space located around the Expo 2020 location will likely be in demand the most by the new startups.
JLL estimates that more than 600,000 sqm of new office space will be added to the market by the end of 2014. Developers in Dubai predict that by 2016, 1.5 million sqm of new office space will enter the market.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.