Middle East turmoil has not help prop up demand for office space
Unrest across other parts of the Middle East has not signalled an influx of foreign firms looking to switch base to Dubai, according to new research published by a major property consultant.
Despite predictions that strife elsewhere had seen Dubai emerge as a regional safe haven in recent months, Jones Lang LaSalle yesterday said that about 44 per cent of the emirate's 5.6 million square feet of office space remained unoccupied at the end of the second quarter of this year.
"The political and social instability in other [regional] countries is
yet to convert into higher take up of office space in Dubai," the firm said.
"However, the regional turmoil has already had a positive impact on Dubai's hotel, retail and residential sectors," the report added.
Travel agents have previously reported that travellers with holidays booked for Egypt and other Middle East locations switched to Dubai as the recent instability weighed on their minds.
However, there was better news in the report for the emirate's residential real estate sector - rents are even on the up again for villas, helped by demand for homes in sought-after locations such as Palm Jumeirah and Arabian Ranches.
The firm said villa rents were up by four per cent during the second quarter of this year, but apartment rents had declined by one per cent over the same period.
© 7Days 2011
