Capital's office space to double
UBS said a lot of supply is in the pipeline, entering the market between late 2008 and late 2009 in Dubai, and from late 2009 in Abu Dhabi."The office market in both Dubai and Abu Dhabi is also characterised by shortages, with occupancy rates around 98 per cent and even higher in the most attractive locations."

"Abu Dhabi office space is going to double over the coming years, with supply of 415,000 square metres (4.3 million sq ft) currently under way, compared to 460,000 sqm (4.7m sq ft) at the end of 2007. As a result, the demand-supply dynamics are expected to change in 2009-10, first in Dubai and then in Abu Dhabi."   

Hotel rooms 
The number of hotel rooms in Dubai is expected to grow by 30 per cent year on year until 2011, according to the latest report on the UAE economy  by Swiss investment bank UBS.

"Given the efforts being made, particularly by Dubai, to become established as a regional and indeed international centre for leisure and tourism, the construction of retail and tourism facilities has seen tremendous growth in recent years.

"A number of huge shopping malls have opened in Dubai, with significant additional supply in the pipeline for 2008-10," it said.

UBS said it expects the supply of shopping mall space in Dubai "to jump from about 1.7 million square metres in 2007 to about 4.2 million square metres in 2010".

"The supply pipeline of retail and tourism facilities in Abu Dhabi is also strong, although on a less grandiose scale than in Dubai," the report added.    

Two cities, two scenarios
The property situation in Abu Dhabi appears somewhat different, as the construction boom is less advanced there than in Dubai, UBS said in its latest report on the UAE economy.

By Staff Writer

© Emirates Business 24/7 2008