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There has been a spurt in enquiries from the engineering and construction sectors for office space in Abu Dhabi, mirroring the rapid growth of the infrastructure construction activity in the capital.
Knight Frank’s report on the office market trends during the first half of the year suggests the average size requirement of this sector remained steady at around 600 square metres, driven mostly by international companies. There has been a dip in the overall number of enquiries for office space which is being attributed to the uncertainty in oil prices.
Rental values of Grade A shell and core office space did not see much movement, remaining steady at around Dh1,400 per square metre. Experts believe that the rates will climb up in the next 12 months. Though a couple of new projects will be ready for handover soon, the demand for prime or Grade A office space is significantly higher than the supply.
The last quarter saw new office space enter the market in Masdar City, Abu Dhabi International Airport and Capital Centre, located near the Abu Dhabi National Exhibition Centre (ADNEC). Some of the new office supply slated to enter the market in the next six months include the Addax Tower on Reem Island, Al Qudra Headquarters in Khalifa Park and Al Hilal Bank Headquarters on Al Maryah Island.
Also adding to the office space will be the Bloom Central on Airport Road. The project features twin towers consisting of a five-star hotel, residential apartments and office space of around 7,000 square metres.
The Abu Dhabi Global Market Square on Maryah Island will be the nerve centre of commercial activities in Abu Dhabi and the seat of many high-profile international companies. Registration of office space in this financial zone is expected to commence by the end of this year.
* New office supply include Masdar City and Capital Centre
* Rental rates of prime or Grade A office space remain steady
* Abu Dhabi Global Market Square will begin operations soon
Source: S. Dhar, Special to Properties
The writer is a freelancer