- 1 Minute Read
- 16th July 2013
Dubai Office Space Market Strengthening
The outlook for the Dubai office space market is steadily-brightening, according to a report by Jones Lang LaSalle (JLL).
Continued growth in the real estate market has been confirmed, with all sectors now in recovery mode.
The economy's continuing expansion has been highlighted following a 4.4 per cent growth in gross domestic product (GDP) in 2012, on the back of buoyancy in all key sectors. Although the last sector to emerge from recession, the office space sector is now on a recovery path, with rental growth reported in high-quality new builds and prime locations.
Craig Plumb, head of research at JLL, says Dubai's retail market continued to improve, and remains dominated by super-regional malls - including Mall of the Emirates and The Dubai Mall. With retail space becoming harder to find in large centres, an increased in demand for retail space in the secondary malls is expected in the near future. This, in turn, should serve to stir the economic pot further, and lead to greater brand distribution.
"Demand has started to shift to the newer areas in the south of Dubai, which are witnessing strong growth and are benefiting from well-developed infrastructure."
According to the report, the real estate investment market remains active with increased volumes of commercial and residential transactions as investment sentiment in Dubai continues to improve.
“We continue to notice interest in single-owned well let buildings from investors from the GCC, who are attracted by the ‘safe haven’ status of Dubai, its legal system and the overall recovery in the market. There are also increasing investments from Chinese organisations in the Dubai real estate market.”
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