Offices under construction in Dubai on par with Shanghai and Moscow

Latest report by Colliers finds that Dubai has the same amount of office space under construction as Shanghai and Moscow

According to a new report by real estate consultants, Colliers International, the amount of office space currently under construction in Dubai is on par with ongoing projects in Shanghai and Moscow. The total office supply in Dubai at the end of 2007 was 26 million square feet and this figure is expected to increase to around 69 million square feet by 2010.

The study on the Middle East and North Africa region (Mena) expects Dubai to account for 71 per cent of the total Gross Leasable Area (GLA) in the UAE in 2 years. Dubai's GDP in 2007 was $54.3 billion and a major portion of the non-oil GDP growth is due to the contributions by the Dubai real estate industry.

The report also forecasts a rise in housing rents, with the rates remaining varied among different developments until the implementation of Property Index. International City lives up to its reputation of being a middle-income housing hub with annual rents for a studio being Dh45,000 and a two bedroom apartment Dh70,000 respectively. By 2010, over 160,000 new housing units will be available in Dubai. Colliers predicts a fall in advance rent payment in Dubai as real estate landlords become increasingly competitive.