Dubai's office occupancy rates strikes an all-time high at 98%
Thursday, April 03, 2008
Dubai has been the most-preferred choice for expanding international companies and major businesses, and this huge influx has led to a high demand for commercial real estate. The rate of office occupancies in Dubai has touched an all-time high of 98% to 99% with zero vacancy levels, reports 'Gowealty.com'.
About more than 90% of Dubai's buildings have been kept aside for commercial utility purposes, most of which are either recently launched or are under construction, with most adopting 'strata' sales.
The office lease charges have been the highest in Sheikh Zayed Road in Dubai, ranging US$1055 per square meter. This is followed by Deira with $825 per square meter. These figures have been arrived at, after compiling and analyzing statistics from landowners and tenants.
On comparing the leasing or rental rates of 2007 with the prevailing rates, an increase in charges by more than 60% has been predicted for a newly leased out commercial space in Dubai for the year 2008-09.
The parameters taken into consideration by investors and organizations are central location, large floor plates, technological connectivity, logistical connectivity, long-term leasing options and parking space. Customers prefer direct transactions with leaser and developer. The complexity of Dubai's multiple strata owners pose problems to those seeking to transact or interact with a single entity.
Just as the case of any investment norms, developers in Dubai's major commercial properties pursue short-term gains and strata owners for immediate capital gains.
Unlike residential complexes, the commercial properties require more parking amenities. With the Dubai realty market expected to stabilize by 2010, we foresee stabilization in the allocation of parking bays to commercial enterprises.
Labels: Latest News, Office Space
