Saturday, October 22, 2011

DIFC continues to maintain more than 95percent occupancy rates

The Gate District of Dubai International Financial Centre (DIFC) has managed to maintain occupancy rate of more than 95percent, while third-party developments within the free zone have leased out more than 58percent of their office space, revealed senior government officials.

The Gate District, which includes the Gate Building, Gate Precinct and Gate Village, has seen more than 95percent occupancy levels. Meanwhile, strong demand from new companies and existing clients within third party developments such as Currency House, Currency Tower, and Liberty House has touched 58percent, said Chief Executive Officer at DIFC, Abdulla Mohammed Al Awar, said.

DIFC officials revealed that during December 2010, occupancy levels has been 95percent in DIFC-owned buildings, while third-party developers leased out more than 35percent of their space

The total leasable commercial space at DIFC owned buildings has been 1.217mn square feet in June 2011, while total commercial office space within third party developers were 769,000 square feet.  Nearly two million square feet of commercial office space at DIFC is likely to be handed over by third-party developers during the next 18 to 24 months.

The centre has also announced its new pricing structure, offering tenants more than 50percent discounts with rentals starting Dh.160per square feet to maximum of Dh.280 per square feet in 2011.

According to Al Awar, the revised pricing structure which was rolled out in 2011, provides long-term visibility to clients, in terms of operating costs, by offering better rates for larger spaces and longer leasing periods.

The prime rental levels within DIFC Gate Building range between Dh.240 and Dh.330. Cluttons, the real estate consultancy, believes that vacancy rates has grown in DIFC during the third quarter, with the number of commercial buildings in free zone area being brought to the market.

According to Al Awar, the third party developments are continuing on track, with several residents and companies having moved into the completed units.

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