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Upscale offices in Dubai commanded the highest rental increases of any city in Middle East and North Africa during the first three months. And these could be in the region of 20 per cent when taken on a year-on-year basis, according to an update from JLL, the consultancy.
For instance, in a location such as DIFC (Dubai International Financial Centre), a drop in Grade A vacancies was the ballast for rental increases. But this is not necessarily the situation existing across all of Dubai’s sub-markets for commercial space. ''The performance of the DIFC was not, however, representative of the wider market, where relatively high vacancy rates have constrained rental growth,'' the report said.
In comparison, Abu Dhabi and Jeddah only recorded rental gains of 5.3 per cent for their high-end offices on an annualised basis, while rents elsewhere ''remained mainly stable''. The overall Mena Index rose 2.7 per cent over the quarter, leading to an annual increase for the first quarter of 2016 to 11.9 per cent.
Worldwide, prime real estate markets are recording improved demand for office leasing — the volumes could ''broadly match those of 2015 and (with) some upside potential of up to 5 per cent. Strengthening global occupier demand through 2016 and tight supply will drive continued rental increases.''
Did you know that Dubai rents dropped further in February
Source: Staff Report, gulfnews.com