The latest office market research by CBRE has confirmed the assumption that Dubai’s commercial real estate sector in general, and its office segment in particular, will be at the forefront of a new market recovery already felt throughout all market segments.
In fact, Q-1 Dubai Market View by CBRE showed that demand for offices currently exceeds supply in TECOM and DIFC free zones, inspiring developers for new project launches.
It is expected that about 800,000 square meters of new offices will be delivered over the next three years in Dubai. This number includes 102,000 sq m of Grade A office and retail units in ICD Brookfield Place in DIFC.
During the first quarter of the year, high-quality offices rentals in central areas of Dubai have risen, and today the average cost of renting these premises stands at AED 1,916 per square meter pa.
As imexre.com previously reported, Core Savills in its latest Q1 report for Dubai has predicted a 7% increase in premium office supply and in secondary market in the current year. The main activity will take place in Dubai's Business Bay area.
“The growth in supply is likely to be most significant in Business Bay over the next few years as the area seeks to establish itself as one of Dubai’s premier business districts,” said the report.
The bulk (51 per cent) of total office supply, that is 4.2 million square metres, is now concentrated in such office locations like Business Bay, Deira, Bur Dubai, Dubai Healthcare City, Tecom and Jumeirah Lakes Towers.
Matt Green, head of Research & Consulting, CBRE Middle East, said: “Overall, the availability of good quality single held offices remains tight, with a surge in pre-leasing activity over the last 24 months stripping a large portion of the recently delivered and upcoming office space from the market before completion.”