Dubai offices top in rental growth
Grade A locations such as DIFC see the biggest gains
Published: 12:21 May 11, 2016
Staff Report Gulf News
Dubai: Dubai’s office properties were the top performing across the Middle East during the first three months, with rentals increasing by 20 per cent year-on-year.
Elsewhere in the Gulf, Abu Dhabi and Jeddah were relatively more sedate at 5.3 per cent.
“Falling vacancies in the Dubai International Financial Centre helping to drive up rental values,” states a new JLL report. “The performance of the DIFC was not, however, representative of the wider market, where relatively high vacancy rates have constrained rental growth.”
The overall MENA Index rose 2.7 per cent during the quarter, pushing the annual increase for Q1-2016 to 11.9 per cent, with demand concentrated in limited Grade A space.
“With the world’s major real estate markets appearing to be back on track following a cautious start to the year, business sentiment is improving and corporate activity is expected to ramp up over the course of 2016, with leasing volumes projected to broadly match those of 2015 and some upside potential of up to 5 per cent,” the report said.