The office sector in Dubai maintains its strength by benefiting from government support
A report by Savills, the real estate consultancy, revealed that the decline in demand for office space has stopped since the last quarter of 2020.
The report, which "Emirates Today" obtained a copy of, expected that the market would maintain its strength until the end of the year.
The report attributed the rise of the demand curve for the office sector to the strong economic recovery and the high sentiment of the business sector for the remainder of 2021, in addition to the continued transfers of companies to stimulate demand in conjunction with the tenants’ endeavor to keep pace with the developments of office spaces for the first category.
Commenting on this topic, 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 accelerated vaccination campaign, which has given companies the confidence to move away from focusing on cost savings, and seek To secure good office space.
She added, "The strong government support for local technology and financial technology companies has led to an increasing number of new companies entering the market. This 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 DIFC's Fintech Hive programme. Four times the global size, to exceed 315,000 square feet.
According to Savills research, tenants are more focused on sustainability than ever, so developers and landlords 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 landlords to raise the quality of spaces common and other building facilities that would improve the marketing of their buildings."
For his part, Swapnel Pillai, Director of Research Middle East at Savills, said: “Rental values have remained relatively stable in most areas of Dubai compared to the first quarter of 2021. However, some sub-markets such as Dubai Design District and One Central, An increase in rental values of 1.5% and 3%, respectively, compared to the previous quarter.
Savills also emphasized that the demand for office space has shifted significantly to sub-markets, such as the Dubai International Financial Centre, Dubai World Trade Center, DMCC, and inland locations such as Business Bay.
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