UAE – Mubasher: The grade A office market in Dubai remained strong over the last three months as the demand for it has been on a steady incline since the fourth quarter (Q4) of 2020, backed by strong economic recovery, according to Savills’ Market in Minutes research on Tuesday.
Relocations continued to drive demand with occupiers looking to upgrade to grade A developments.
“In most micro-markets, rental values have remained relatively stable when compared to Q1-21. However, certain submarkets, such as the Dubai Design District (D3) and One Central, have recorded an increase in rental values by 1.5% to 3% quarter-on-quarter (QoQ),” Associate Director Research at Savills Middle East, Swapnil Pillai, commented.
The real estate research agency confirmed that demand for office space has notably shifted to submarkets such as Dubai International Financial Centre (DIFC), Dubai World Trade Centre (DWTC), Dubai Multi Commodities Centre (DMCC), and onshore locations like Business Bay.
“Due to the accelerated vaccination drive, the UAE’s economy is among the very first in the world to showcase increased recovery and growth. This has given companies the confidence to move away from focusing on cost-saving to instead securing quality office spaces,” said Director of International Corporate Services at Savills Middle East, Paula Walshe.
There has been a strong push as well towards promoting and growing homegrown tech and fintech business that contributed to the demand for office space, especially flexible space.