Dubai, United Arab Emirates: October 7 2015: Dubai may need to alter its zonal development strategy in order to attract more global tech occupiers, according to a new report published today by international real estate advisor Savills.

The firm states that whist 2012 to 2014 saw a boom in Dubai office supply delivery, a year-on-year increase in available space was recorded at 13% in 2014, mainly among out-of-town business zones.  Furthermore, space which has largely attracted international corporate occupiers has seen rents fall as supply has overtaken demand. 

In Dubai's finance sector, take up has fallen by 6.7% during H115 and rents have fallen by as much as 60% since 2008.  Savills report suggests developers now need to turn towards creating specific pedestrian-friendly, urban schemes to attract the global tech occupiers who are looking for accommodation in the distinctive, creative, urban environments that have fared well in cities such as London and New York. One of the key features of successful tech environments is the capability of streets of a tech neighbourhood to facilitate human interaction and serendipitous meetings between people with different skills and capabilities.  In terms of existing stock, the report indicates Citywalk in Dubai, a new low-rise mixed-use development arranged around a traditional street layout is an early successful example of a more tech-friendly development. 

Commenting on the report, David Godchaux, CEO of Core Savills said: "There is an emerging trend that we are seeing whereby some developers are moving away from mega-structures in which cars are essential, to more pedestrianized, urban communities which align with a high-end European lifestyle.

These developments are typically low-rise and promote more intimate and small-scale shopping, grocery and street retail experiences, which are growing in popularity. The new prime real estate in Dubai will have a focus on quality not quantity - with a shift away from the 'longest, tallest and biggest' mind frame, at least in the very prime real estate segment."

Yolande Barnes, director of Savills world research, says: "As its market has matured, Dubai has recognised that to ensure sustainable growth it needs to supply a full mix of office space and styles, including space that appeals to a growing number of tech and creative companies. This requires a completely different type of development mindset and approach to urban planning, which also needs to overcome the unique challenges posed by Dubai's climate." 

Savills Tech Cities research programme, finds small cities with the right urban environments are big hitters on the global stage.  Identifying the 12 global centres at the forefront of tech, it found access to human capital a key driver in locating tech firms, and vibrant cities are where the talent wants to live and work - factors ranging from access to venture capital through to quality of a 'flat white' coffee available at the neighbourhood café are all included in the metrics.  With its access to Venture Capital, excellent links to other key global cities and city living offer, Savills suggests Dubai could rise to become a leading tech destination within the region if it addresses the urban planning issues that this implies.

-Ends-

For more information please contact:
Danielle Doueik, Edelman DABO
Tel: +971 (0)569510685
Email: danielle.d@daboandco.com

© Press Release 2015