Friday, August 03, 2007

Dubai yields better returns on commercial investments

Although the office rents in Dubai are on the lower side in comparison to the global standards, the office market in Dubai has generated a return of more than twenty percent on investment, which is considered to be one of the highest in the world.

Increasing demand for Grade A office space, coupled with minimal vacancies, has led to a situation wherein new projects are grabbed away within days. To add to this, healthy policies and economic conditions have resulted in more companies getting settled in Dubai, boosting up the rental values further.

The highest increase have been recorded in Sheikh Zayed Road and New Dubai areas, with rental rates ranging from Dh.300 to Dh.350 per square foot on an average, due to minimal vacancies.

Although, due to increasing rentals, there are probabilities of the small and medium sized companies relocating their offices to other emirates such as Abu Dhabi, Ajman or Ras Al-Khaimah, where the rents are comparatively lower, the continued supply of office space in the market is expected to stablilize the prices. As of now, about 50 million square feet of office space is expected to come up by 2010.

2 comments:

Sean Remington said...

That's exciting news for commercial investors. Not so great for home investors, but oh well. I love your website design, by the way too! Thanks!

andydean said...

can anyone assist me, i am looking for general rental costs per sq/f on cafe restaurant space in Dubai, ideally in a shopping mall/tourist destination
have tried various search engines but to no avail
many thanks