Dubai’s off-plan rates for commercial properties shoot up: Realty management firm

Dubai's off-plan rates for commercial real estates have shot up by 40 per cent in the past eight months, says a property management firm. The upward sojourn is basically attributed to the belief that huge number of office projects will be ready for hand over next year.

Sana Kapadia, a Research Analyst at EFG-Hermes, said in a recent report: "Office rents have risen by almost 25 per cent year-to-date with fast-growing demand pushing them up for a third year. Continued strong interest in the Dubai property market and a widening foreign investor base have focused increasing attention on the commercial property sector."

Office properties in Dubai have currently a vacancy level of around one per cent. Meanwhile, rental yields in Dubai have come down by more than five per cent in the last two years as service charges on commercial properties have gone up by an average of 25 to 30 per cent.