Dubai economy boosts office market

Photo credit: Chusico

Dubai's economy is enjoying a period of strong growth and positive sentiment. As confidence grows, companies are beginning to expand, hiring more people and taking up more space.

Indeed, data from the emirate's Department of Economic Development shows that the number of new business licences issued in 2013 climbed 11.4 per cent year-on-year to more than 18,000.

As a result, demand for offices has begun to climb, reports Knight Frank.

Supply is rising to meet that level of increased interest, keeping rents stable and vacancy rates steady at 50 per cent. The shift is more notable, though, in the prime office sector, with vacancy rates plunging to 16 per cent.

Jon McGloin, Knight Frank Leasing Manager said: “In the first quarter of this year, demand was strongest from the professional sector, which accounted for almost 40 per cent of all enquiries. The technology (14 per cent) and general trading (12 per cent) sectors were the next biggest sources of demand, while engineering & construction (7 per cent), leisure & hospitality (6 per cent), real estate (6 per cent) and oil & gas (4 per cent) sectors featured further down the list.”