Supported by a strong economic recovery and high business sentiment for the remainder of 2021
Savills International: The office sector in Dubai maintains its strength
Savills: Demand shifted to sub-markets such as Dubai International Financial.
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Savills, a global real estate consultancy, revealed that the first-class office space sector in Dubai has remained strong over the past three months.
The latest releases of Savills research (the market in minutes) indicated that the demand for first-class office space has stabilized since the last quarter of 2020, due to the strong economic recovery and high business sentiment for the remainder of 2021, at a time when transitions continue Companies stimulate demand, as tenants seek to keep pace with developments in Class A office space.
According to Savills, tenants are more focused on sustainability than ever, so developers have begun studying the feasibility of obtaining globally recognized accreditations, such as LEED certification for energy leadership and environmental design, among others, for their buildings, which prompted an additional number of real estate owners to raise their level. Common spaces and other building facilities which would improve the marketing of their buildings.
Savills noted that the demand for office space has shifted remarkably to sub-markets, such as the Dubai International Financial Center, the Dubai World Trade Center, the Dubai Multi Commodities Center, and inland locations such as Business Bay.
Paula Walsh, Director of International Corporate Services at Savills, said: “The UAE economy is one of the first in the world to show an increase in recovery and growth, as a result of the accelerating vaccination campaign, which gave companies the confidence to move away from focusing on cost savings, and seek To secure good office space.
Commenting on the contribution of governments to the growth of the office space rental sector, Walsh said: “The strong government support for local technology and financial technology companies has led to an increasing number of new companies entering the market, which has contributed to a significant increase in the demand for office space, and this is what we saw In the recent announcement of the expansion of the Fintech Hive program of the Dubai International Financial Center fourfold, to exceed an area of 315,000 square feet.”
For his part, Director of Research Department in the Middle East at Savills, Swabniel Pillai, said that rental values remained relatively stable in most of the partial markets, compared to the first quarter of 2021. Despite this, some sub-markets such as Dubai Design District recorded and One Central, an increase in rental values of 1.5% and 3%, respectively, compared to the previous quarter.
It is noteworthy that Savills, the global real estate company, has had a presence in the Middle East for more than 43 years, and in-depth and comprehensive experience in various fields. The company was established in 1855 in the United Kingdom, and has more than 600 offices in the Americas, Europe, Asia Pacific, Africa and the Middle East. middle.
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