Office rent upturn highlights strength of Dubai's property sector

15/04/2013 - Dubai Property News Posted by Neil King
Office rent upturn highlights strength of Dubai's property sector

The demand for office space in Dubai has risen so sharply in recent months that landlords have been able to bump up their rent.A new study by Jones Lang LaSalle (JLL) has shown that the tricky commercial real estate market finally showed signs of life in the first quarter of the year.While the residential property sector has been going from strength to strength in the past year, the clamour for office space has not been anywhere near as intense, but this appears to be changing.For the first time since mid-2008, all sectors of the emirate's property industry are well positioned and the future seems to be bright.Chief executive of JLL Alan Robertson is hoping to see a period of slower and more manageable growth than in previous years."For some months now, we have seen sustained confidence in the Dubai real estate market, although it remains selective with the best performance focused on high quality assets in prime locations," he remarked.According to the REIDIN general Residential Sale Index residential property sales increased by 18 per cent in the first quarter of 2013 when compared with the corresponding period in 2012.As ever, it is the higher end of Dubai's property market that is attracting the most attention. The demand for villas and luxurious apartments in areas like Burj Downtown, Dubai Marina and Palm Jumeirah soared between January and March.Craig Plumb, head of research for JLL in the Middle East and North Africa region, believes Dubai's economy will continue to expand and foreign investors will see the city as an increasingly appealing place to secure new assets."Dubai could even benefit from the continued uncertainties in the eurozone which may lead to a transfer of capital into the Dubai real estate market, given its safe haven status and attractiveness to offshore investors," he commented.Around 28,000 new properties are expected to be built by the end of this year, which means investors will have plenty of excellent buildings to choose from when they scour the UAE market.Click here for your free property investment guide