The latest report on Dubai real estate by analytical agency Asteco noticed that office market showed the greatest activity in the year second quarter.
Office property rental sector in Dubai goes way ahead of the sales sector in terms prices growth: the cost of renting offices in Dubai increased in the second quarter by an average of 2%, while sales prices in the same sector declined by 1%.
The largest demand for office spaces, according to Asteco, was observed in DIFC free economic zone, where offices rents were up 11% in the past three months. The existing quality office property stock in DIFC is almost full, so new companies have to look for other options in the neighboring complexes. As a result, the cost of renting an office in such office buildings as Central Park Towers, is also rising. An empty shell and core office rental here will cost you US $ 529 per square meter and a fitted office space is about US $ 734 per square meter.
Attractive prices for offices rentals in Index Tower also changed in the last three months after several floors in the building have been refitted to house a number of a small-sized office spaces. Now rental cost per square meter of the office space here is US $ 1028.
On the other hand, the popular Dubai business district Business Bay saw major rental decline in the second quarter — by an average 10%, according to Asteco, due to a substantial increase in supply. More than 120,000 square meters of office property will be built here in the next three years, so rental prices are likely to decline even more.