Middle East serviced office markets are world’s most erratic

Dubai and Qatar’s serviced office markets have exhibited more erratic behaviour than any other emerging market in the world, according to a recent report by Gulf News.

While rents in Dubai and Qatar continue to improve, the number of open centres has fallen by over 30%, - down to 19% over two years. Meanwhile, Abu Dhabi’s office market has grown by 72%, to 12 business centres over the same period.

Monthly desk rental prices in Dubai fell from the record high of $1,675 (Dh6,147) in 2008, down to to $900 in 2011, with market prices recovering slowly to $955 so far in 2013.

The figures are a stark contrast to the serviced office markets of Asia, Latin America, Africa and Eastern Europe, with each market reporting consistent double digit growth year-on-year.

The research team at Gulf News, predicts the number of emerging serviced office markets is set to double within five years, with market leaders Regus expanding their operations on the continent, capitalising on foreign interest with an eye on entering emerging economies.

According to the report, Dubai has had the most volatile office market throughout the Middle East, with the global financial meltdown in 2008 and government clampdown on foreign business operations in the UAE affecting the serviced office market heavily.