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Real estate consultancy firm Knight Frank’s recent report of the office market in Dubai suggests that the area witnessed a 35 per cent year-on-year rental growth during the third quarter of 2014. This is significantly higher than the average growth of office rentals in other parts of the emirate which was pegged at 23 per cent.
The district has also made it to the list of top 10 global investment hotspots identified to be competing with the likes of Williamsburg in New York, the 16th arrondissement of Paris and London’s Victoria Park.
Business Bay’s strategic location, making it an extension of Downtown Dubai and the Dubai International Financial Centre (DIFC) along with its proximity to the upcoming Dubai Canal, has helped it to rise up the ranks in popularity.
The ambitious Dubai Canal will connect Business Bay with the Arabian Gulf while passing through the heart of Dubai. Entertainment centers and restaurants will come up along the waterway, further raising the stock of commercial properties in the area.
Cluttons’ latest survey on the outlook of the real estate sector in Dubai reveals that unlike the other central locations in the emirate, land plots are available in Business Bay and these are being lapped up by developers looking to construct commercial, mixed-use and residential buildings. The demand for plots in the area has grown significantly, and the prices have also witnessed an upward trend. Plots of land which were available at Dh200-250 per square foot have jumped to around Dh400 per square foot in 2014.
Moreover, the annual cost of renting an office space in Business Bay is pegged at around Dh80-100 per square foot.
According to recent estimates, Business Bay will account for around 60 per cent of the new office stock to hit the market by 2016.
• Office rentals show impressive YOY growth in Business Bay
• Dubai Canal expected to further boost Business Bay properties
• District made it to the list of top 10 global investment hotspots
Source: S. Dhar, Special to Properties
The writer is a freelancer