Office Market Overview
In the last quarter of 2014, central business district (CBD) vacancy rate was set at 24% as opposed to 29% in the final quarter of 2013. Office supply increased by 2.7% year-on-year reaching 7.6 million sqm by the end of 2014. An additional 1.2 million sqm of office space is expected to enter the market in 2015.
Political instability in the region is expected to continue to push investors towards the safety of Dubai, and so, as demand is likely to remain high for single owned buildings in established locations, rental rates and vacancy levels are expected to remain stable in the short term. However, as a large number of new stock is due to be completed by the end of 2015, notably the Dubai Design District and the Dubai Trade Center District Development, vacancy levels are expected to increase putting downward pressure on average rent prices.