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Realty News from UAE

Dubai office vacancies running at 25%

Up to a quarter of office space in Dubai is vacant and with new stock coming on-stream as projects are completed, this figure is expected to increase, according to the latest report from property consultancy Jones Lang Lasalle.

The Dubai Office Market Snapshot for the second quarter of 2009 said an additional 2 million square feet of office space had come into the market during this period. The total office stock in Dubai as of June 2009 was now approximately 33.6m sq ft, the report said.


“Vacancy rates are hovering between 22 per cent and 25 per cent and are expected to increase further over the next 6 months as new supply continues to be released,” said the report.

As a result, rents have fallen by 25 per cent compared to the previous quarter. In the first three months of this year, the decline had averaged 45 per cent.

“The global economic downturn has certainly been a major factor in reducing the level of demand as many tenants have either downsized, delayed their expansion plans or wait to see where rents may settle,” said Matthew Hammond, Head of Agency at Jones Lang Lasalle MENA.

Office rents for prime space now average Dh225 per sq ft annum across Dubai (excluding the DIFC), which is in line with those seen mid 2007.

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