For the first time in six years, office rents in Dubai are rebounding. They are rising faster than in New York or London as global banks and businesses expand into this financial hub in the Middle East, according to a Bloomberg report. It said the demand for space across Dubai is increasing as the emirate attracts more wealth and expats due to relatively easy access to visas and its response to the pandemic.
“The rush for office space in the emirate is on show in skyscrapers like ICD Brookfield Place, which towers 928.5 feet (283 meters) over the financial district. The tower opened just as the pandemic spread globally, but roughly 90 per cent of its 1.1 million square feet of office and retail space is now taken or under offer, with a long wait list for the rest,” the report said.
UBS Group AG, Israeli fintech firm Rapyd and Pernod Ricard SA, which relocated staff from Hong Kong, are among the tenants in this Dubai’s tower.
“The whole market is sort of lifting itself up. We’ve seen the return to the office much stronger than other jurisdictions” like the US and the UK, according to Rob Devereux, who is the chief executive officer of ICD Brookfield, a joint venture between New York-based Brookfield Asset Management Inc and the emirate’s sovereign wealth fund, Investment Corporation of Dubai, according to the report.
According to real estate adviser CBRE Group, the value of office rentals in Dubai during the second quarter of this year rose for the first time since early 2016. Prime office rents rose 7 per cent in the year through June, while grade A space increased 7.2 per cent. At the other end of the spectrum, lower grade workspace rose 3 per cent.
Prime rents in London, meanwhile, rose 1.4 per cent in the second quarter, while they rose 3 per cent or less in various parts of New York, according to CBRE.
Indian Real Estate Market
Even as the coronavirus pandemic ebbs, the Indian retail space is also witnessing growing footfalls across retail and recreational spaces. The retail sector made a robust recovery in the second quarter of 2022, with transaction activity growing by more than 100 per cent on a quarterly basis. Overall, in H1 2022, it reported massive growth of more than 160 per cent y-o-y, according to a report by real estate consulting firm CBRE South Asia.
It added that across cities, brands are resizing and recalibrating their physical store strategies to diversify their portfolio and expand their footprint, with ‘experience’ fast becoming an important frontier to bridge the retailer-consumer gap.
“H1 2022 saw more than 500 per cent increase in project completions compared to a year ago. We expect these positive sentiments to sustain in the near term even as retailers explore innovative means to attract consumers and drive sales on both online and online fronts,” the report said.
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