Dubai, Office Market Bulletin, Summer 2017
Cluttons has released its biannual Dubai Office Bulletin for Summer 2017.
Key highlights from the report:
- Faltering global economic conditions are chipping away at demand
- Emirates Towers Business Park is set to become Dubai's most defining commercial development in over 10 years
- TECOM free zones in New Dubai remain primary targets for many of the city’s new market entrants
- The ever-expanding technology-media-telecoms (TMT) sector has been a significant driver in the persistent demand and has stoked upper limit rents
- In Internet City, Media City and Dubai Knowledge Park area, upper limit rents (including service charges) have increased by almost 5%
The recent announcement for plans to establish the Emirates Towers Business Park underscores the depth of demand for highly specced Grade A office space in Central Dubai, which remains in short supply. In fact, our experience has shown that demand from international blue chip organisations for modern office buildings, with large efficient floorplates has contributed to the success of Emirates Towers and the core DIFC, both of which command the highest rents in the city, which is also matched by the lowest vacancy rates in the emirate.
The quiet success of the DIFC over the last 15 years since its inception is reflected in the fact that around 1,600 organisations are housed in the region’s most prominent financial hub, which together employ in excess of 20,000 workers. The new Emirates Towers Business Park, which encompasses what are arguably Sheikh Zayed Road’s most iconic buildings will usher in a new era for Dubai’s growing importance as a global financial hub, while crucially providing prime Grade A space where it is in most demand. We expect pre-leasing interest in the development to be very buoyant.
As we have recently seen with the city’s industrial market evolution, this new iconic AED 5 billion business park will complement the DIFC, raising the profile of central Dubai globally, while propelling the city’s profile from being regionally significant to a major global financial nerve centre that will rival Wall Street in New York, or ‘The City’ in London in years to come.
Further detail is presented in the report, including the heat map below.