In Dubai, the financial capital of the United Arab Emirates, office rents started increasing six years later, and the pace of this increase is more than New York and London. Till 2013, property rates in Dubai were the highest and the office rent was more in comparison to places like New York and London. But since 2014, there emerged a downfall in Dubai’s real estate sector.
The trouble deepened during the COVID-19 pandemic; but now, Dubai’s real estate market is getting back to the original trends once again. Not only are global companies opening up new offices, but multinational banks and other businesses are expanding. The office rents are increasing in the Middle East’s node of economic and business activities, Dubai after 2016.
In the last few years, a lot of high-rise towers have been built and companies are eager to rent offices in these. In the 928 feet high IDC Brook Field Place, there is an office and retail space spread around 11 lakh sq. feet, out of which, 90% of the area has already been leased out or is proposed for the same. Companies who have rented office space include USB Group AG, Israeli fintech firm, Rapid, and Pernod Ricard.
As per real estate consultant, CBRI, the prime office rent, as compared to the last year, increased 7% in June, while there has been a 7.2% increase in A-grade office space. On the other hand, prime office space rents in London increased 1.4% in the June trimester and in New York, the maximum increase has been recorded at 3%.
