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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.
Location Rate in Sqm(US$)
| Business bay | 6427 | ||
| Jumeriah Lake Tower | 4293 | ||
| Jumeriah Village South | 2366 | ||
| Dubai Sport City | 4118 | ||
| Dubai silicon Oasis | 2936 | ||
| City Of Arabia | 3598 | ||
| Tecom | 6665 | ||
| Shaikh Zayed Road | 6730 | ||
| DIFC | 12668 | ||
| Dubai Marina | 9062 | ||
Our findings reveal that prices are comparatively higher in the Sheikh Zayed Road and adjoining business districts. They are highest at Dubai International Financial Centre (US$ 12,668 per square metre), followed by Dubai Marina (US$ 9,062 per square metre).Business Bay will overtake Sheikh Zayed Road as the prime area for business and trade in Dubai by 2009/10, the reason being the iconic tower of 'Burj Dubai', the tallest structure in the world.
Moreover the Burj Boulevard district, which is an appendage of the district, is home to 'Dubai Mall', the world’s largest shopping mall. Prices of offices at Business Bay average US$ 6427 per square metre. Prices of offices at Tecom average US$ 6665 per square metre. Upon comparing the existing price indices for office space in Dubai with 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.
