The Dubai office market has experienced a healthy level of demand in Q3 2015, after a longer and sustained drop in occupier sentiment over the Ramadam period.
Occupier activity continues to be seen in the shape of expansions, new start-ups, consolidations and renewals, which has further reduced vacancy levels, especially with prime office developments where the supply of available space remains low.
Despite the drop in oil prices, Dubai’s economy has continued to grow, a testament to the city’s diversification across various sectors including finance, logistics, tourism and retail. Prime rents continue to rise due to the healthy level of demand and low supply of prime office space.
A number of well-specified Grade A prime office developments designed to cater for a growing level of occupier demand were delivered in Q3 2015 in order to satisfy both on shore and off shore demand.
Tecom’s D3 development at the Design District is the first to come on line with the initial phase delivered in March and set to complete by the end of this year. A number of high profile luxury, fashion and design companies have already committed to the development, encouraging a diverse range of global, regional and local firms in related industries to sign pre-lease agreements on future phases of the project.
Expected to be delivered in Q4 this year, the new office development at the Trade Centre will also add some much needed grade A supply to the market. The development will also be suitable for free zone based business as well as those with a DED trade license.
For more information, downlad Knight Frank's Dubai Offices Market Update Q3 Update.