Indian and Chinese companies is driving up demand for office space in Dubai, making the emirate the eighth most expensive market globally for prime offices based on rents.
While leasing activity was driven by an influx of corporates from the US and Europe in the second quarter of the year, standing at 72% in Q2 2023 compared to 55% in Q1 2023, Dubai also witnessed a “gradual inflow” of companies from Asia, specifically India and China, according to the Dubai Office Market report by real estate services company Savills.
China National Petroleum Corporation (CNPC) and Indian insurance provider Bajaj Allianz Life were among the firms that took up space in Dubai during H1 2023, with the second quarter seeing one of the highest numbers of new companies open their regional office in the city.
The quarterly increase in rental values also positioned Dubai as the eighth most expensive market for prime offices globally, according to the latest Savills Prime Office Costs report, seeing the emirate overtaking cities such as Paris, Shanghai, and Delhi.
The post-pandemic effect has seen the return of Chinese investments to the GCC, with the Dubai residential market also reaping its benefits. A recent report by real estate brokers Allsopp & Allsopp noted the first half of 2023 saw a rise in the sale of luxury apartments following an increased demand from Russian investors and recently returning Chinese buyers. The investments attributed to significant price increases – ranging between 8-10% - in premium units with water views in Downtown Dubai, Bluewaters, and Dubai Marina.
(Writing by Bindu Rai, editing by Seban Scaria)