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While the property market in Dubai undergoes a period of change, office occupancy levels are the silver lining, according to Gulf News.
Net absorption averages 112,000 square metres in the four years up to first quarter of 2015. During the same period, the annual increase in new supply totalled 109,000 square metres, according to estimates by the consultancy JLL.
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. The concerns of a supply overhang has shifted to the high-end residential property space. There is more good tidings anticipated — “Discussions with international corporates reveal they are currently forecasting a headcount growth of between 5—20% per annum in the UAE over the next three to five years,” according to the JLL report, which tapped corporate occupier sentiment.
Dubai is expected to consolidate its position as the favoured location for corporate occupiers in the region over the next three years. It’s success at diversifying its economy, supported by a strong private sector, has acted as a buffer against recent falls in oil prices, and allowed Dubai to achieve stronger economic growth than the rest of the UAE in 2014-2015.
