Dubai office rents climb 22 . 4pc in H1 2024 : Knight Frank
Dubai s office lease rates have surged by 22.4% in the past year, driven by high demand and limited supply, with occupancy levels exceeding 90%. Despite pandemic concerns, businesses prioritize prime space to attract talent, leading to a shortage of prime space. Knight Frank reports a robust demand from various industries, with new requirements for office space highlighting the sector s resilience. The Dubai International Financial Centre (DIFC) remains the most expensive area for office rentals, with average rents reaching AED355 per square foot. The Trade Centre District and Downtown Dubai follow, with rents at AED350 and AED200 per square foot, respectively. Submarkets like The Greens, Sheikh Zayed Road (West), and Jumeirah Lakes Towers have also experienced significant growth. The shortage of prime space is expected to persist, with only 4.2 million square feet due between now and 2028, most of which is already spoken for. The flight to quality trend is evident, with businesses willing to pay a premium for sustainable office space. City-wide occupancies for Grade-B assets sit at over 85%, while Grade-A assets exceed 90%. Transaction volumes in the office sales market have increased by 24% year-on-year, reaching AED2.7 billion. Downtown Dubai continues to dominate office sales prices, with average values reaching AED3,609 per square foot. In summary, Dubai s office market is experiencing a surge in lease rates due to high demand and limited supply. Businesses are prioritizing prime space to attract talent, leading to a shortage of prime space. The market remains robust, with transaction volumes and sales prices increasing. The flight to quality trend is evident, with businesses willing to pay a premium for sustainable office space.
Source: tradearabia.comPublished on 2024-09-26
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