Dubai is expected to consolidate its position as the top city for corporate occupiers in the the Middle East and North Africa over the next three years, according to a new report. Boasting a multitude of cultures and a host of business opportunities, Dubai still holds its position as the centre of the Arab world when it comes to business.
Dubai is expected to consolidate its position as the top city for corporate occupiers in the the Middle East and North Africa over the next three years, according to a new report by real estate investment and advisory firm JLL. Its first Occupier Sentiment Survey in the MENA region said while there is still growth in demand in Saudi Arabia and Egypt from companies servicing these local markets, Dubai remains the preferred location for regional operations.
JLL said high quality amenities, sufficient parking, good accessibility and international standards of property management are increasingly significant factors that influence occupancy and rental levels, as office densities increase and flexible working becomes more common.
Dubai’s office occupancy levels are providing a silver lining in a rather clouded readjustment period for the overall property market, with net absorption averaging 112,000 square metres in the four years up to first quarter of 2015. What it shows is that Dubai’s developers have taken the right stance by not going in for a massive addition in new office property launches during this period, allowing whatever new stock coming through to be absorbed without upsetting the market dynamic.
Occupancy levels are rising across the emirate. Dubai Sports City expects to house 20,000 people within a year, as the mixed-use complex expects to attract new tenants. It expects to attract 5,000 residents to its existing projects this year and have 70,000 people when it is fully completed in the next seven years.
House prices in Dubai slipped by 3.7% in 2015, but despite the slowdown, the emirate's property sector is going strong. According to Phidar Advisory, the ongoing decline of sale prices is, in fact, a healthy correction. The emirate is also listed among cities that have outperformed as a prime city since 2009.