Vol:13 Apr/08
Dubai expects 35% growth in office prices in 08/09
Dubai expects 35% growth in office prices in 08/09
In our preceding issue, we discussed the phenomenal rise in the leasing charges for commercial space in Dubai, predicting a growth rate of 60% in 2008/09. This week we analyze the price indices of commercial properties at various business clusters in the emirate.Dubai ’s rise as a hub of international trade and business has fuelled demand for commercial space in the emirate, with a majority of international establishments preferring leased spaces offering large floor plates, adequate parking space and superior logistical connectivity. But competition for offices in prime areas has spawned scarcity. Consequently, we note an increasing number of local and foreign investors favoring direct ownership, especially due to the difficulty in obtaining rental space. This in turn, has altered the price structure of offices considerably. 
(Source: Gowealthy Research Team. Resources include in-house data, newspaper ads, classified, online listings, developers' availabilities) Our findings reveal that prices are comparatively higher in the Sheikh Zayed Road and adjoining business districts. They are highest at Dubai International Financial Centre (US$ 12,668 per square metre), followed by Dubai Marina (US$ 9,062 per square metre). The following chart features the present price variations in Dubai from cluster to cluster. 
those for the last 3 years, we expect a 30% to 35% hike in the rates for 2008/2009. The commercial real estate sector in Dubai has outperformed the residential market in terms of investments and growth potential in the last three years. And, we foresee a major windfall for investors in this segment in the near future. |
