The demand for Grade A space in Dubai has remained strong over the last three months, contrary to the situation in 2020 when markets were easing out of lockdown, according to Savills, the leading global real estate advisors.
Since Q4 2020, it has seen a steady rise mainly due to the strong economic recovery and bullish business sentiments for the remainder of the year. Moreover, relocations continue to drive demand with occupiers looking to upgrade to Grade A developments, stated Savills in its latest ‘Market in Minutes’ research.
With sustainability remaining a top priority for tenants, now more than ever, developers and landlords are beginning to evaluate the feasibility of certifying their buildings with globally recognized accreditations such as LEED among others.
Furthermore, this has also driven an increasing number of landlords to upgrade common areas and other building facilities to improve the marketability of their buildings, said the expert in its report.
During the Q2, the demand for office space has notably shifted to submarkets such as DIFC, DWTC, DMCC and onshore locations such as Business Bay, it added.
Paula Walshe, Director of International Corporate Services at Savills Middle East, said: "Due to the accelerated vaccination drive, the UAE’s economy is among the very first in the world to showcase increased recovery and growth. This has given companies the confidence to move away from focusing on cost saving to instead securing quality office spaces."
Swapnil Pillai, Associate Director Research at Savills Middle East said: "In most micro-markets, rental values have remained relatively stable when compared to Q1 2021."
"However, certain submarkets, such as the Dubai Design District (D3) and One Central, have recorded an increase in rental values by 1.5 percent to 3.0 percent q-o-q," he added.-TradeArabia News Service