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Dubai office rents plummet 34 percent
Dubai still most expensive location for office space in Middle East, says DTZ research report.
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Office rents in Bahrain fall sharply
Office rents in Bahrain have reduced by 20 percent… -
No end in sight as Dubai office rents continue to soar
Feb 7th, 2010
Dubai commercial rents plummeted by 34 percent last year - but the emirate is still the most expensive location for office space in Middle East, according to a DTZ research report.
In 2009 Dubai office space averaged at $14,520 per workstation, placing it eleventh in the global rankings. In twelfth place, Abu Dhabi’s occupancy costs were $14,300 per workstation, followed by Doha in seventeenth place with costs of $12,520 per workstation in 2009. The least expensive location in the Middle East in 2009 was Al Khobar in Saudi Arabia where annual occupancy costs equated to $3,930 per workstation.
Nick Witty, DTZ’s COO for the Middle East, said: “Occupiers throughout the region are taking advantage of the current market to demand increased leasing incentives from landlords. These include more flexible lease terms, extended rent-free periods and that office space should be fully or partially fitted out.”
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There is no doubt an oversupply story (residential and office in Dubai). What I have not seen with all these price plummeting stories is a graph showing prices over last 10 years. My guess is the big problem is the speculative high cost construction but if the prices were plotted returns from base price say 2002 or so have been acceptable
Are there any trend statistics for Dubai? (and of course then comparative costs can be made over time)
John,
Example: office rents on Sheikh Zayed Road in the late 90’s were around 50-70 Dhs/sqft. Commercial space in Emirates Towers was 90 Dhs/sqft when it opened. Then it trundled along at those levels until the ‘explosion’ of the boom.
Dubai office space is still expesive. It is the right time to take advantage of the situation and correct time for investment..