Central Dubai rents to stabilise

04/02/2010 - Dubai Investment News
Central Dubai rents to stabilise
Posted by Neil King

Rent in central Dubai's business districts is expected to stabilise during the first quarter of this year.

According to research analyst Mohammed Faheem, from CB Richard Ellis' (CBRE's) Middle East operation, it is highly unlikely there will be significant changes to leasing rates for office space in the city.

However, he said that outside of central Dubai, landlords are likely to offer incentives to encourage tenants to sign a lease.

"In secondary locations, however, new stock is likely to increase vacancy rates, which currently is about 30 per cent," he said.

"The drop in lease rates over the past year has seen existing companies relocating [or] upgrading their office space to newer locations and quality accommodation," he added.

CBRE's recent Dubai property market report claimed that a substantial increase in demand is needed if the city is to improve its vacancy rates.

According to The FutureBrand Gulf Real Estate Study, 70 per cent of investors claim property prices in Dubai offer good value for money.