Office rents start to stabilise across Dubai
Office rents across Dubai have shown clear signs of stabilising during Q2, with more than half of the 26 submarkets, we track registering no quarterly change. Hence, occupiers remain firmly in the driving seat.
05 August 2021
Key takeaways:
- The technology-media-telecoms (TMT) sector is leading with the fastest rate of job creation, along with transportation and storage. These sectors are expected to add 100,000 net new jobs to the UAE economy by 2026. Overall requirements rose by 11.2% quarter on quarter, with the TMT sector (22.1%) dominating demand for new space, most of which is concentrated around Central Dubai.
- By amending the UAE Companies’ Law in June to allow 100% foreign ownership outside freezones in onshore locations, the UAE has unlocked its potential to emerge as a key hub for global business headquarters. However, businesses are not expected to leave the city’s freezones en-masse as they offer unmatched advantages over onshore locations, such as access to world leading transport hubs, tax-free holidays, agglomeration benefits, etc.
- Outlook – Office lease rates for the best performing buildings are experiencing their first rate rises since Q3 2019 as the flight to quality persists and businesses place factors such as employee wellbeing and ESG at the heart of their post-Covid reoccupation strategies.
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