Updates from the UAE office market

UAE office marketImage Credit: Supplied

In recent times, the UAE office market has not been jolted by bouts of volatility. Unlike residential deals, there have always been better supply and a steady demand for office space, keeping claims of a weakening economy at bay.

While small and mid-sized businesses have shown greater interest in office premises, the demand in Dubai’s free zones is also consistent. As a result, sharp ups and downs or major corrections have not been witnessed in Dubai’s office property market, according to experts.

Although buying and selling are slightly sluggish, leasing transactions have hogged the limelight. If industry sources are to be believed, the sentiments for Dubai’s commercial office space is certainly turning bullish. An increase in the number of enquiries and a steady rise in rental rates indicate good times ahead.

Free zones like the Dubai International Financial Centre (DIFC) and Tecom are attractive options among enterprises and commercial space is hardly vacant in these areas. Properties in Business Bay, Shaikh Zayed Road and some other free zones have recorded impressive rental growths, indicating better prospects for the emirate’s office market.

According to a report by Knight Frank, enquiries for office space in Abu Dhabi have slowed down in the first half of 2015. However, office rents may see an upward pressure in the coming months as supply of new property increases. While prime office rents edged up, further infrastructural developments may see positive outcomes for Abu Dhabi’s office space demand.

In Sharjah, the demand for office space from small and medium enterprises, banking and finance, and aviation has helped prime office space rental rates to remain stable, according to a report released by Cluttons during the second quarter.

Handy Hints
• The UAE office market has never been affected by volatility
• Tecom and DIFC see steady demand for commercial space
• Dubai witnesses increased enquiries, steady rise in rental rates

Source: Shabnam Mondal, Special to Properties
The writer is a freelancer


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