Core Savills consultancy presented its first quarter 2016 Dubai Office Market report, according to which the emirate is expected to increase premium office supply in 2016.
More secondary office space will also be handed over together with Grade A offices with the most of the new offices to be built mainly in Business Bay area, said the report.
Experts predict the rapid development of the office property sector in Business Bay. Over the next few years, as this area is now positioning itself as one of the most popular and developed business districts of the city, which is confirmed by imexre.com data. Besides, the increased attention of international companies and, therefore, the Dubai developers is also given to such areas as Deira, Bur Dubai, Dubai Healthcare City, Tecom and Jumeirah Lakes Towers. 51% of all office property built in 2015, which is 4.2 million square meters, falls on these areas, although there the stock is filled more with secondary offices rather than premium.
As for the Grade A office spaces, they tend to be concentrated in areas such as DIFC free zone, Downtown Dubai, the area along Sheikh Zayed Road (from Trade Center to the First Intersection), Dubai Internet City and Dubai Media City. According to imexre.com, 28% of all 2015 office supply accounted for these areas, namely 2.4 million square meters of new office space, while Dubai’s bulk office supply for 2015 stands for about 8.4 million square meters. Most offices were built in Business Bay — about 318,000 square meters of new office property were handed there last year.
Grade A office supply saw the biggest growth in recent years. It has increased by 4% since 2013, and is forecasted to grow by 7% in 2016. This type of the office space is also in the highest demand among international and local tenants, imexre.com and other experts findings show.
“We expect this trend to continue over the next few years with relatively strong underlying demand for quality office space that is currently not being fully met," said the report by Core Savills.