Unlike with residential, where there have been bouts of volatility in recent months, Dubai’s office realty seems to be having a better time.
According to a Gulf News report, this has been helped by stability in demand as well as steady supply of new stock coming in. At a broader level, it also means that leasing trends for offices have not been impacted by concerns that the Dubai/UAE economy could be in for a rougher ride from weak oil prices.
The overall office stock in Dubai at the end of the first quarter is estimated at 8.1 million square metres, including the 40,000 square metres at Dubai Design District that got delivered during this period, according to estimates by CBRE. Through the whole of last year, the new deliveries were around 420,000 square metres.
“There wasn’t a major correction in Dubai’s office property market … all through the last two or three quarters it’s been recording steady movements rather than sharp ups or downs,” said Samir Munshi, managing director of Silver Heights, a real estate investment and brokerage firm. “For instance, at the two office towers (Oxford and Empire Heights) in Business Bay, occupancy has gone beyond the 50 per cent mark in the last 12 months."