Just in:
Samsung Partners National Heritage Board to Bring a Slice of Singapore’s Cultural Heritage to Samsung The Frame TV // First-Ever Fortune Innovation Forum Draws Top Global Leaders to Hong Kong, Promoting Agendas On Collective Cross-Sector Advancement // Ingdan Announces 2023 Annual Results // German Job Market Resilience Bodes Well for Economic Recovery // Andertoons by Mark Anderson for Fri, 29 Mar 2024 // Andertoons by Mark Anderson for Thu, 28 Mar 2024 // Experience Ultimate Shopping Freedom at 4.4 Shopee Spree: Don’t Worry, Shop Shopee! // New Nylon Constant Torque Hinge From Southco Provides Position Control In A Compact Package // Sunshine’s Debut Features Leave Tech World Scratching Its Head // No running of govt from jail, says Delhi Lt Governor // Samsung Electronics Launches 2024 Neo QLED 8K, Neo QLED, and OLED Displays to Spark the AI Screen Era // Konica Minolta is named ASEAN 2023 Market Leader in Colour Light and Mid Digital Production Printers // CABSAT 2024 Ushers in 30 Years of Media Innovation // U.S. Compliance Takes Center Stage at OKX Following Industry Jitters // US reiterates concern over Kejriwal arrest, Cong accounts // Universal Language for Healthcare: General Authority Embraces Global Coding System // Global Audience to Witness Thrill of Dubai World Cup // Sharjah Chamber Breaks Ground on Final Expansion with New HQ Pact // AIA Hong Kong Wins More Than 20 Accolades at MPF Ratings MPF Awards, BENCHMARK MPF of The Year Awards and Bloomberg Businessweek Top Fund Awards // Emirati Aid Reaches Ukraine as Food Shortages Bite //
HomeChannelsFeaturedDubai Business District office rents climb 25%

Dubai Business District office rents climb 25%

dubai office rentOffice rents in Dubai’s central business district surged 25 percent in the second quarter from a year earlier amid strong economic growth and rising business confidence, according to CBRE Group Inc.

Prime CBD rents, which account for 20 percent of the overall market, rose to 1,884 dirhams ($513) per square meter a year, CBRE said in a report today. Rents in secondary locations climbed 24 percent.

“The secondary market is picking up as a result of the lack of available space within the CBD,” Nick Maclean, CBRE’s managing director for the Middle East region, said by phone. “It’s really an overspill.”

ADVERTISEMENT

Office values and rents tumbled with the rest of Dubai’s property market after 2008 as speculation-driven construction exceeded demand from tenants. A recovery that lifted homes, shops and hotels over the last two years is starting to trickle down to commercial buildings, which lagged behind the market as a whole. Large businesses shunned buildings sold to multiple owners under a system known as strata title in favor of properties owned by single entities. Most are in the CBD.

Within two years, a large amount of construction in the central business district is set to start, including Dubai International Financial Centre and Dubai Trade Centre, Maclean said. In the meantime, companies will be forced to look for space at existing secondary locations.

The vacancy rate for prime CBD offices fell during the past 12 months to less than 16 percent, CBRE said. That compares with 40 percent for all Dubai offices.

The supply of offices in Dubai will grow significantly, with more than 1.8 million square meters to be completed by the end of 2017. Still, most of that space will be held by multiple owners, under strata-ownership titles, shunned by large corporate occupiers and institutional investors.

Almost 500,000 square meters of office space is scheduled for completion this year, with more than 30 percent of that in the Business Bay area, CBRE said.-Bloomberg

ADVERTISEMENT

ADVERTISEMENT
Just in:
2024 Lok Sabha Elections Will Be The Costliest One Till Now In The Whole World // Samsung Partners National Heritage Board to Bring a Slice of Singapore’s Cultural Heritage to Samsung The Frame TV // AIA Hong Kong Wins More Than 20 Accolades at MPF Ratings MPF Awards, BENCHMARK MPF of The Year Awards and Bloomberg Businessweek Top Fund Awards // Sunshine’s Debut Features Leave Tech World Scratching Its Head // Emirati Aid Reaches Ukraine as Food Shortages Bite // Global Audience to Witness Thrill of Dubai World Cup // Konica Minolta is named ASEAN 2023 Market Leader in Colour Light and Mid Digital Production Printers // Samsung Electronics Launches 2024 Neo QLED 8K, Neo QLED, and OLED Displays to Spark the AI Screen Era // CABSAT 2024 Ushers in 30 Years of Media Innovation // U.S. Compliance Takes Center Stage at OKX Following Industry Jitters // Sharjah Chamber Breaks Ground on Final Expansion with New HQ Pact // Melco Style Presents “SANRIO CHARACTERS STUDIO CITY CARNIVAL” – Explore a SANRIO World of Unlimited Love and Cuteness // New Nylon Constant Torque Hinge From Southco Provides Position Control In A Compact Package // US reiterates concern over Kejriwal arrest, Cong accounts // Hong Kong Crypto Exchange Application Stalled by US Lawsuit // Infineon and HD Korea Shipbuilding & Offshore Engineering jointly develop ship electrification technology // Saudi Arabia Unveils Green Financing Tool to Achieve Net-Zero Goals // German Job Market Resilience Bodes Well for Economic Recovery // Hope for Respite as UAE Endorses UN Plea for Gaza Truce // TUMI Hosts Global Launch Event in Singapore to Unveil Women’s Asra Collection and Announce Global Ambassador, Mun Ka Young //