Of­fice Mar­ket Over­view

Ekaruna - - State Of The Market -

SUM­MARY

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.

OUT­LOOK

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.

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