Office rents up 25%

27.07.2014
It definitely appears to be the year for commercial property with office rents continuing to see hikes - 3% quarter-on-quarter and 25% year-on-year, according to newest research. Office rents in Dubai are still rising, with average prime Central Business District (CBD) rents up 3% quarter-on-quarter and 25% year-on-year, according to the Q2 2014 Dubai Market View by property advisor CBRE.
ConstructionWeekOnline reported that according to the CBRE, the CBD market continues to face a diminishing availability of good quality office accommodation, specifically offices that are capable of accommodating large corporate space occupiers over contagious floors.
Occupancy rates within prime CBD offices have been rising steadily over the past 12 months with less than 16% vacancy rate compared to an average of 40% vacancy for all Dubai office stock.
Mat Green, head of Research & Consultancy UAE, CBRE Middle East, said: “The average prime rental rate now measures AED1,884 per square metre per annum and this figure is expected to increase further within the short term amidst strong economic growth and rising business confidence.”
He added: “Secondary office locations continue to see an improving performance with average rents rising from AED924 per m2 per annum in Q2 2013 to AED1,148 per m2 per annum in Q2 2014. This reflects growth of 24% in just one year with a 5% rental growth recorded during Q2 2014."

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