| 07 Feb 2010 |
|
Office rentals remain subdued in January due to new supplies
- Text size
Office rental prices in Dubai remain subdued with a slight fall witnessed in some areas in January, according to the latest figures released by Better Homes.
Many areas in the city saw a drop of five to 10 per cent with rents falling most (by 20 per cent) at Sheikh Zayed Road. There are three main reasons behind this drop, said Porush Jhunjhunwala, Head, Commercial Leasing at Better Homes.
"The reason [for the drop in rents] is that property owners who were holding the prices all this while and could not achieve the desired prices are being realistic and releasing their stocks. Secondly, tenants are still holding on to their decision, thus delaying their requirement to move on and lastly, we have seen more existing companies giving away additional space and new supply coming in these locations," he told Emirates Business.
Office rents dropped in areas such as Bur Dubai, Karama, Deira, Garhoud, Qusais, Sheikh Zayed Road, Barsha and Tecom Sector C.
However, there are some areas in the city where rents have picked up - such as DIFC. "Though we have seen some stability only in A-grade office buildings over the last quarter of 2009, the rentals for grade A offices are still high and we could expect some correction moving forward," said Jhunjhunwala.
The Better Homes expert, however, said it was difficult to predict what exactly will happen this year.
Some analyst in the market have said that it has probably bottomed-out but there are institutions such as UBS, which is predicting a further fall in property price in the city.
Recently, a report by CB Richard Ellis said lease rates in Dubai's central business districts are likely to stabilise during the first quarter of this year. According to CB Richard Ellis, vacancy rates in central business districts will not change much but new stock is expected in secondary locations, which may bring good news for tenants.
"It's too difficult to forecast how much the market will further correct at this stage. We have to take each month at a time," Jhunjhunwala stressed.
By Staff Writer
x
DISCLAIMER
Zawya is a distributor (and not a publisher) of content supplied by third parties and subscribers. Any opinions, advice, statements, services, offers, or other information or content expressed or made available by those third parties, including information providers, subscribers or other users of the Service, are those of the respective author(s) or distributor(s) and not of the Company. The Company neither endorses nor is responsible for the accuracy or reliability of any opinion, advice or statement made on the Service by anyone other than authorized Service employee spokespersons while acting in their official capacities. The Company is not responsible for any infringement of intellectual property rights or breach of any applicable law or regulation, including regulation in relation to financial services or the distribution of financial products, defamation, data protection, telecommunications (including regulations relating to excessive use, spamming or other abusive activities) or obscene, offensive or illegal content). Under no circumstances will the Company be liable for any loss or damage caused by a member's reliance on information obtained through the Service. It is the responsibility of member to evaluate the accuracy, completeness or usefulness of any information, opinion, advice or other content available through the Service. Please seek the advice of professionals, as appropriate, regarding the evaluation of any specific information, opinion, advice or other content.
Read the full Member Agreement
http://www.zawya.com/legal/NewsLetter.cfm?name=disclaimer
Zawya is a distributor (and not a publisher) of content supplied by third parties and subscribers. Any opinions, advice, statements, services, offers, or other information or content expressed or made available by those third parties, including information providers, subscribers or other users of the Service, are those of the respective author(s) or distributor(s) and not of the Company. The Company neither endorses nor is responsible for the accuracy or reliability of any opinion, advice or statement made on the Service by anyone other than authorized Service employee spokespersons while acting in their official capacities. The Company is not responsible for any infringement of intellectual property rights or breach of any applicable law or regulation, including regulation in relation to financial services or the distribution of financial products, defamation, data protection, telecommunications (including regulations relating to excessive use, spamming or other abusive activities) or obscene, offensive or illegal content). Under no circumstances will the Company be liable for any loss or damage caused by a member's reliance on information obtained through the Service. It is the responsibility of member to evaluate the accuracy, completeness or usefulness of any information, opinion, advice or other content available through the Service. Please seek the advice of professionals, as appropriate, regarding the evaluation of any specific information, opinion, advice or other content.
Read the full Member Agreement
http://www.zawya.com/legal/NewsLetter.cfm?name=disclaimer
Access to this article is subject to specific terms and condition.
Loading ...Free Newsletter
Get the latest news from Real Estate and other Free newsletters.
Post a Comment
1.1 Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
1.2 Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
1.3 Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
1.4 Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
1.5 Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
1.6 Give the impression that they represent Zawya.
1.7 Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.