Office rents stabilise

18.05.2015
In the secondary market, rents have been affected by the abundance of stock which continues to trickle through in locations such as Jumeirah Lake Towers and Business Bay.

Office rents across Dubai have started stabilising, according to a new report.

Cluttons’ Spring 2015 Dubai Commercial Property Outlook report shows that Grade A office rents grew by 14% in 2014, while secondary space saw a more substantial 24% uplift last year. This strong growth has largely failed to carry through to this year, with a widespread stabilisation in rents, despite a steady stream of requirements from corporate occupiers, CPI Financial reported.

In the secondary market, rents have been affected by the abundance of stock which continues to trickle through in locations such as Jumeirah Lake Towers and Business Bay. While demand for Grade A space remains diverse and strong, mirroring the growth across the various business segments of the economy, average rents have stabilised.

Steve Morgan, Chief Executive at Cluttons Middle East said, “Our experience has also been reflected in the results of the latest Dubai Economic Department Business Confidence Survey, where 69 per cent of responding businesses have indicated that they will invest in capacity expansion over the next 12 months. The outlook for business remains very upbeat with over two-thirds of businesses expecting a rise in their level of trading, while 26 per cent expect to increase their head count over the year.”

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