Analysis

CBRE Global Office MarketView: UAE

Following the publication of CB Richard Ellis’ (CBRE) latest Global Office MarketView, Head of Research & Consultancy UAE for CBRE Middle East, Mat Green, takes a look at what the report means for the UAE Abu Dhabi Most occupiers in Abu Dhabi are choosing to delay moves to later in 2012, waiting for the new […]

Following the publication of CB Richard Ellis’ (CBRE) latest Global Office MarketView, Head of Research & Consultancy UAE for CBRE Middle East, Mat Green, takes a look at what the report means for the UAE

Abu Dhabi

Most occupiers in Abu Dhabi are choosing to delay moves to later in 2012, waiting for the new budget allocations to be finalized and for new high-quality stock to be delivered onto the market.

In turn, the expected increase in supply levels will challenge landlords to maintain high occupancy

rates and offer more competitive rent levels.

 

Dubai

Dubai CBD prime lease rates remained unchanged during the past year but hightened competition is prompting landlords to adopt more aggressive leasing strategies and offer longer rent free periods to lure tenants. Market conditions outside of the CBD will remain challenging next year, when a large amount of new space is due for completion. The bulk of deliveries will be concentrated in secondary and tertiary locations such as Business Bay, DIP and Jumeirah Lakes Towers.

 

Conclusion

There are a lot of positives to take from the last year with solid economic and population growth in Dubai reflecting an improving business environment.  That said, there are still challenges ahead with significant volumes of supply looming.  We anticipate that the flight to quality will continue and that will maintain rents for prime properties in the most attractive locations, but on the flipside will see secondary products suffer amidst rising vacancy rates and strong competition to secure tenancies.

 

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