Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Office rents continue to surge in Dubai  Join our daily free Newsletter

MENAFN - Khaleej Times - 24/07/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) E rise in rents is despite sustained significant growth in office stock with over 1.Office rents in Dubai continue to surge in tandem with a strong rental growth in residential sector on the back of a buoyant economy and increasing business confidence in tandem with a strong rental growth in Residential sector global property advisor CBRE said on Wednesday.

Average prime Central Business District (CBD) rents went up three per cent quarter-on-quarter and 25 per cent year-on-year the second quarter 2014 Dubai MarketView by CBRE revealed.

Mat Green head of Research and Consultancy UAE CBRE Middle East said the average Dh1884 per square metre per annum. This is expected to increase further within the short term amidst strong economic growth and rising business confidence.

“The CBD market also continues to face a diminishing availability of good quality office accommodation specifically offices that are capable of accommodating large corporate space occupiers over contiguous floors. Occupancy rates within prime CBD offices have been rising steadily over the past 12 months with less than 16 per cent vacancy rate compared to an average of 40 per cent vacancy for all Dubai office stock” said the report.

The rise in rents is despite sustained significant growth in office stock with over 1.8 million square metres set to be delivered by the end of 2017 the report said.

“Secondary office locations continue to see an improving performance with average rents rising from Dh924/sqm/annum to Dh1148/sqm/annum in second quarter 2014. This reflects growth of 24 per cent in just one year with a five per cent rental growth recorded during the quarter” added Green.

With limited availability of good quality office accommodation in prime areas we can expect to see demand spillover into some secondary locations particularly for single owned properties in close proximity to transport links.

While there is a large pipeline of new office supply the majority of this space will be negatively impacted by its strata ownership title. During 2014 almost 0.5 million square metre is scheduled for completion with over 30 per cent of this total to be delivered in the Business Bay area said Green.

Concurrent with the office rent surge Dubai’s residential sector continues to experience strong demand from both occupation and transactional sources. However there has been a slowdown in the number of transactions for ready to move in properties said the report.

According to the Dubai Land Deparment the number of transactions dropped 10 per cent quarter on quarter and 18 per cent year on year with a total of 3545 real estate transactions completed during the second quarter. The value of real estate transactions has perhaps started to stabilise with second quarter sales exceeding a value of Dh7.7 billion with first quarter transactions valued at Dh7.6 billion. However the off-plan market remains buoyant further underlining concerns over speculation.


“Despite recent regulatory changes both rentals and sales prices continue to rise albeit at a marginally slower rate than was recorded during the previous quarter. The residential development pipeline is still increasing with a rising number of new projects being launched month by month. Whilst this pipeline is still far smaller than witnessed during the last cycle it is nonetheless growing quickly and is certainly something to monitor carefully with a danger that further down the line supply could again start to exceed demand fundamentals” said the CBRE report.

“During 2014 close to 17000 new units are expected to be completed with the majority of these set to be delivered in secondary locations such as Dubailand Jumeirah Village Circle and Silicon Oasis. Over the next four years roughly 65000 new units are penned for completion with 83 per cent of these apartments and villas and townhouses comprising the balance” commented Green.

The overall Dubai Residential Price Index is showing rental increases of almost 20 per cent over the last year with apartments registering an increase of 21 per cent while villa rentals have grown by almost 10 per cent noted the report.

“With sustained demand for both occupational and investment properties we anticipate that residential rental and sales growth will continue throughout 2014. However we expect growth levels to be lower than 2013 performance as affordability becomes a more influential driver of property moves” said Green. Real estate investment and advisory firm JLL in its recent report said although the residential sector saw prices and rents increase across most areas the rate of growth has started to slow from that seen earlier in the year. Average sale prices grew by six per cent in the second quarter down from 10 per cent in the previous quarter.

In the office sector while continued economic growth has improved sentiment and generated demand for commercial space the high level of both current vacancy and future supply continue to constrain the market JLL noted.

— issacjohnkhaleejtimes.com

 


Khaleej Times




  MENA News Headlines
 May 2 2016 - Kerry: 'Critical hours' to halt carnage in Syria's AleppoThe Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) >U.S. Secretary of State John Kerry began a diplomatic push in Geneva on May 1 as world powers seek to halt the mounting violence in Syria's Aleppo Province. ...

 May 2 2016 - Turkey begins making its debut hibious assault shipThe Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) >Turkey has launched the building phase of its amphibious landing platform dock (LPD) warship for the Turkish Naval Forces with a ceremony on April 30. ...

 May 2 2016 - Coalition drones take off from Turkey hit ISIL in Syria for second dayThe Journal Of Turkish Weekly
(MENAFN - The Journal Of Turkish Weekly) >Islamic State of Iraq and the Levant (ISIL) targets in Syria’s north were hit by armed drones belonging to the U.S.-led coalition on May 2. Four MQ-1 ...

 May 2 2016 - UAE- Anti-Money Laundering and Suspicious Cases Unit and Financial Services Regulatory Authority sign MoUEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI 2nd May 2016 (WAM)-- The Anti-Money Laundering and Suspicious Cases Unit (AMLSCU) at the Central Bank of the UAE and the Financial Services ...

 May 2 2016 - Saif bin Zayed visits NMC Pavilion at Abu Dhabi International Book FairEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) ABU DHABI 2nd May 2016 (WAM) H.H. Lt. General Sheikh Saif bin Zayed Al Nahyan Deputy Prime Minister and Minister of the Interior today visited the National ...

 May 2 2016 - Knowledge without Borders participates in 26th Abu Dhabi International Book FairEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) SHARJAH 2nd May 2016 (WAM) -- Knowledge without Borders KwB the Sharjah-based cultural project that works to promote reading and literature throughout the ...

 May 2 2016 - Dubai FDI-led mission to US spurs interest among innovators and knowledge-based industriesEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) DUBAI 2nd May 2016 (WAM) -- Dubai's ambitious growth plans as well as policy focus on competitiveness and innovation have been explained to US investors and ...

 May 2 2016 - Qatar- HE Foreign Minister Discusses Aleppo with Saudi U.S. and German FMsQatar News Agency
(MENAFN - Qatar News Agency) Doha May 01 (QNA) - HE the Foreign Minister Sheikh Mohammed bin Abdulrahman Al-Thani held on Sunday a number of separate phone calls with the Minister of Foreign Affairs ...

 May 2 2016 - Qatar- HE Foreign Minister Meets Riad HijabQatar News Agency
(MENAFN - Qatar News Agency) Doha May 01 (QNA) - HE the Foreign Minister Sheikh Mohammed bin Abdulrahman Al-Thani met here on Sunday with the Coordinator-General of the Supreme Commission for Syrian ...

 May 2 2016 - Qatar Will Continue Improving Workers' Conditions HE Minister SaysQatar News Agency
(MENAFN - Qatar News Agency) Doha May 01 (QNA) - HE Minister of Administrative Development Labor and Social Affairs Dr. Eissa bin Saad Al Jafali Al Nuaimi said today that the State of Qatar under the ...

 May 2 2016 - Qatar Regulates All World Cup Projects Carefully Official SaysQatar News Agency
(MENAFN - Qatar News Agency) Doha May 01 (QNA) - Secretary-General of the Supreme Committee for Legacy and Delivery Hassan Al Thawadi said Sunday that all projects related to the World Cup are being ...

 May 2 2016 - Gulf Legislatures' Coordination and Follow-up Committee Convenes in DohaQatar News Agency
(MENAFN - Qatar News Agency) Doha May 01 (QNA) - The meeting of the coordination and follow-up committee of the Gulf Cooperation Council (GCC) States' Legislatures started here on Sunday. The ...

 May 2 2016 - Qatar- HH Sheikha Moza Attends Graduation Ceremony of HBKU's 2016 ClassQatar News Agency
(MENAFN - Qatar News Agency) Doha May 01 (QNA) - In the presence of HH Chairperson of Qatar Foundation (QF) Sheikha Moza bint Nasser and HE Vice Chairperson and CEO of QF Sheikha Hind bint Hamad ...

 May 2 2016 - Qatar- Minister of State for Defense Affairs Meets Senator Marco RubioQatar News Agency
(MENAFN - Qatar News Agency) Doha May 01 (QNA) - HE the Minister of State for Defense Affairs Dr Khalid bin Mohamed Al Attiyah met today with US Senator Marco Rubio a member of Senate's Intelligence ...

 May 2 2016 - UAE Foreign Minister Arrives in DohaQatar News Agency
(MENAFN - Qatar News Agency) Doha May 01 (QNA) - HH Minister of Foreign Affairs of the United Arab Emirates Sheikh Abdullah bin Zayed Al Nahyan arrived in Doha today on an official visit during which ...

 May 2 2016 - Qatar- HE Deputy Prime Minister Meets Omani AmbassadorQatar News Agency
(MENAFN - Qatar News Agency) Doha May 02 (QNA) - HE Deputy Prime Minister and Minister of State for Cabinet Affairs Ahmed bin Abdullah Al Mahmoud met Monday with HE Ambassador of the Sultanate of ...

 May 2 2016 - Qatar- Seoul: N. Korea's April 23 SLBM Launch Ended in FailureQatar News Agency
(MENAFN - Qatar News Agency) Seoul May 02 (QNA) - North Korea made a false claim about the April 23 launch of its submarine-launched ballistic missile (SLBM) multiple government sources in Seoul said ...

 May 2 2016 - Qatar- US Cruise Ship Travels to Cuba for First Time in DecadesQatar News Agency
(MENAFN - Qatar News Agency) Miami May 02 (QNA) - An American cruise ship is sailing to Cuba from the US the first such trip in more than 50 years. The Adoni has sailed from the port of Miami ...

 May 2 2016 - Qatar- UN: 741 People Killed in Violence across Iraq in AprilQatar News Agency
(MENAFN - Qatar News Agency) Baghdad May 02 (QNA) - A total of 741 Iraqis were killed and another 1374 were injured in acts of terrorism violence and armed conflict in Iraq in April 2016 a UN ...

 May 2 2016 - Qatar- Iranian President Meets South Korean CounterpartQatar News Agency
(MENAFN - Qatar News Agency) Tehran May 02 (QNA) - President of Iran Hassan Rouhani met Monday with President of South Korea Park Geun-hye currently visiting Tehran. During the meeting they ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help