Dubai’s office market remains strong on government support
03 August 2021, Arabian Business – arabian business.com
Certain submarkets, such as the Dubai Design District (D3) and One Central, have recorded an increase in rental values by 1.5% to 3.0% quarter-on-quarter.
Dubai’s office market remains strong on the back of government support and continued economic recovery from the coronavirus pandemic, according to research from real estate advisers Savills.
Figures revealed on Monday show demand for grade A office space has been on an upward trajectory since the last quarter of 2020, with projections forecast for that to continue throughout the remainder of the year.
“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,” Paul Walshe, director of international corporate services at Savills Middle East, said.
He added that a strong push towards promoting and growing home grown tech and fintech companies is contributing towards the demand for office space, especially flexible space.
“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 sqft.,” Walshe said.
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 recognised accreditations, such as LEED, among others. Furthermore, this has also driven an increasing number of landlords to upgrade common areas and other building facilities to improve the marketability of their properties.
“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 percent to 3.0 percent quarter-on-quarter,” Swapnil Pillai, associate director research at Savills Middle East said.