Prime office market in Dubai has remained strong over the past three months amid signs of strong economic recovery and bullish business sentiments underpinned by significant government support.
Property consultants Savills said in its latest ‘Market in Minutes’ research report that the demand for Grade A office space has been on a steady incline since Q4 2020 due to a strong economic rebound. Relocations also continued to drive demand with occupiers looking to upgrade to Grade-A developments, said the report.
“Due to the accelerated vaccination drive, the UAE’s economy is among the very first in the world to showcase increased recovery and growth. This has given companies the confidence to move away from focusing on cost saving to instead securing quality office spaces,” said Paul Walshe, director of international corporate services at Savills Middle East.
According to Savills research, with sustainability remaining a high priority for occupiers, now more than ever, developers and landlords are beginning to evaluate the feasibility of certifying their buildings with globally recognized accreditations. “This has also driven an increasing number of landlords to upgrade common areas and other building facilities to improve the marketability of their buildings.”
Walshe said strong support from the government towards promoting home grown tech and fintech companies has resulted in an increasing number of new businesses entering the market. “This has significantly contributed towards the demand for office space evidenced by the recent announcement to expand the DIFC FinTech Hive four-fold to over 315,000 square feet.”
“In most micro-markets, rental values have remained relatively stable when compared to Q1 2021. However, certain submarkets, such as the Dubai Design District (D3) and One Central, have recorded an increase in rental values by 1.5 per cent to 3.0 per cent q-o-q,” said Swapnil Pillai, associate director research at Savills Middle East.
Savills also confirmed that demand for office space has notably shifted to submarkets such as DIFC, DWTC, DMCC and onshore locations such as Business Bay.
issacjohn@khaleejtimes.com
As countries across the world attempt to slow global warming, the switch to electric vehicles is particularly significant. But that requires wrenching change that is a death knell for hundreds of companies that make components for conventional engines. They will be obsolete in an EV world
While concerns about the geopolitical order, climate change and the Covid-19 pandemic have understandably been in the spotlight, water is rarely discussed outside the context of humanitarian responses to local, national, or transboundary floods or droughts
Epicentre was in Hindu Kush mountain range, near the remote northern Afghan province of Badakhshan
Traders largely expect a 25-basis-point rate hike from the Fed on Wednesday
The Supreme Council for Islamic Affairs did not receive any report or testimonies from sky gazers
Iraq war cost both sides dearly and left America wary of any intervention
As per astronomical calculations, the ninth month of the Islamic calendar will last for 29 days this year
As many as 12,000 banking staff could become unemployed as unions demand rescue package
iPhone | iPad
Android
Huawei
