FINANCIAL NEWS

UAE’s office market seen recovering in Q4

01 Feb 2012

(MENAFN) A report, issued by the Royal Institution of Chartered Surveyors (RICS), said that UAE’s office market started to stabilize in the fourth quarter of 2011, Arabian Business reported.

Rental expectations and investment enquiries during the final quarter of last year maintained “an upward trend”, RICS said.

In December, a report by CB Richard Ellis showed significant activities in Dubai’s office market in the third quarter of 2011, with a noticeable upturn in lease enquiries.

Another report by CBRE said that Dubai saw demand increasing in the third quarter, with existing companies looking to expand their activities, or from occupiers located in older areas of the city seeking more central areas.

The Dubai International Financial Centre and TECOM freezones were particularly in demand this quarter, resulting in a sharp reduction in local vacancy rates, it added.

CBRE, however, said that Abu Dhabi’s rising vacancy rates are keeping rents firmly under pressure, with many occupiers considering deferring relocation decisions until 2012, when a considerable amount of new supply will become available to the market.

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