Cluttons consultancy presented its Spring 2016 Dubai Office Market Bulletin, according to which the strong demand from international and local occupiers continually leeds to higher rents in almost all submarkets.
7 Dubai office submarkets saw a significant rise in office rents, while 13 other submarkets remained stable, while two more submarkets witnessed a decline in lower limit rents, says the report.
With the formation of new Dubai Free Zones Dubai Design District (D3) and the Dubai World Trade District potential tenants are increasingly focusing their attention to offices in Central Dubai, which used to suffer from the supply/demand imbalance at the background of increasing number of registered occupiers. Since the launch of the D3 free zone its lower limit office rents have risen by 67%, while the upper limit rents have increased by 28%, and today the average rents psf of office space there are between AED150 and AED 165.
The best growth rates in the industry were recorded in 2015 for such office areas of New Dubai as Tecom, Dubai Internet City, Dubai Media City and Dubai Knowledge Village, said Cluttons. Overall, this submarket saw a 10 percent increase in lower limit rents to AED165 per sq ft, while upper limit rents increased by 13 percent to AED225 per sq ft.
Old Dubai, according to the data collected by Cluttons, is still very popular among local occupiers. The demand here remains at a consistently high level with average office rentals having increased significantly in such areas as Bur Dubai and Garhoud.