Dubai office market experiencing healthy level of demand
In its latest 2015 Q3 Office Market Update, real estate consultancy firm Knight Frank provides highlights a number of observations in the office sector in Dubai. While there are signs economic momentum is slowing, levels of activity remain robust. Dubai’s economy has continued to grow despite the drop in oil prices which is testament to the city’s diversification, says the report.
The healthy level of demand and low supply of prime office space has helped to exert continued upward pressure on rents. Prime rents were again flat quarter on quarter but were up 2.1% from a year earlier.
Occupier activity continues to be seen in the shape of expansions, new start-ups, consolidations and renewals which has further reduced vacancy levels, especially within prime office developments where the supply of available space remains low.
Q3 2015 has seen the delivery of a number of well-specified prime office developments designed to cater for a growing level of occupier demand, and Knight Frank is seeing a number of new Grade-A developments come to ground.