{"id":19746,"date":"2016-07-14T23:46:25","date_gmt":"2016-07-14T16:46:25","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=19746"},"modified":"2016-07-14T22:29:20","modified_gmt":"2016-07-14T15:29:20","slug":"dubai-office-rents-dragged-down-amid-glut-of-new-supply","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-office-rents-dragged-down-amid-glut-of-new-supply\/","title":{"rendered":"Dubai office rents dragged down amid glut of new supply"},"content":{"rendered":"


\nOffice rents in some of Dubai’s most established business locations fell in the three months to the end of June as a glut of new office stock drove markets south.Rents for offices in Downtown Dubai and along Sheikh Zayed Road fell by 6 per cent in the second quarter, compared with the same period last year, because of competition from new supply at a time when the economy is suffering from tumbling oil prices and the strong US dollar, according to Core, the UAE associate of property broker Savills. Rents were forced down by thousands of square metres of new stock at Dubai Trade Centre District and Dubai Design District, coupled with competitively priced buildings at Business Bay. Rents fell 3 per cent in Business Bay where Core estimates that about a third of all office space remains empty.About 30 per cent of the 7.3 million sq feet of new office space currently being built in Dubai and expected to be completed by 2018 is in Business Bay, Core said. Dubai has about 90 million sq feet of office stock, a third of which qualifies as prime.JLT was the Dubai district where rents fell the most – with a 10 per cent drop in the second quarter of this year – as the area continues to suffer from an oversupply of grade-B offices, which are often owned by hundreds of owners who undercut each other to levels as low as Dh60 per sq foot.And Core says that in real terms rent declines in these areas are even bigger.”Both JLT and Business Bay have seen a steady shift in sentiment as tenants strengthen their position while landlords slowly respond to the market conditions amid growing competition,” said David Godchaux, Core’s chief executive. “As a result, landlords are offering a raft of incentives such as contributions in fit-outs, extended rent-free periods and shorter lease terms to retain or attract new tenants, although aiming to keep headline rentals steady.”But strong demand from media companies and banks meant that rents continued to rise in two of Dubai’s most established office locations.Rents in Tecom – an area favoured by media and internet companies – rose by 10 per cent during the period. And rents in the popular DIFC increased by 6 per cent during the quarter, thanks to demand from banks and insurers.In May, Cluttons predicted that office rents in Dubai could fall by as much as 10 per cent over the second half of the year following redundancies in banking and finance. “The current weakness in some sub-markets of Dubai’s office market is expected to persist, with further rental declines likely as we move into the summer months,” said Faisal Durrani, the head of research at Cluttons.lbarnard@thenational.aeFollow The National’s Business section on Twitter
\n
\nSource : thenational.ae
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Office rents in some of Dubai’s most established business locations fell in the three months...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-19746","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-58u","jetpack-related-posts":[{"id":19740,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-office-rents-dragged-down-by-amid-glut-of-new-supply\/","url_meta":{"origin":19746,"position":0},"title":"Dubai office rents dragged down by amid glut of new supply","date":"July 14, 2016","format":false,"excerpt":"\r Office rents in some of Dubai's most established business locations fell in the three months to the end of June as a glut of new office stock drove markets south.Rents for offices in Downtown Dubai and along Sheikh Zayed Road fell by 6 per cent in the second quarter,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7754,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/office-rents-in-prime-dubai-sites-costly-but-rates-fall-elsewhere\/","url_meta":{"origin":19746,"position":1},"title":"Office rents in prime Dubai sites costly but rates fall elsewhere","date":"March 13, 2016","format":false,"excerpt":"\r \r Property developers in Dubai will complete another 450,000 square metres of office towers this year, putting more pressure on rents and potentially giving relief to businesses affected by tougher economic conditions.The glut of new stock equates to 7 per cent of the city's total 6.61 million sq metres\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":38596,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-supply-to-lower-dubai-suburban-rents-in-2017\/","url_meta":{"origin":19746,"position":2},"title":"New supply to lower Dubai suburban rents in 2017","date":"December 19, 2016","format":false,"excerpt":"\r Dubai rents are set to decline further next year with more than 20,000 new homes entering the market, brokers say. After having fallen by up to 5 per cent this year in parts of Dubai, rents should drop by another 4 per cent in the suburbs next year amid\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":43955,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/falling-dubai-housing-rents-to-come-under-further-pressure-this-year\/","url_meta":{"origin":19746,"position":3},"title":"Falling Dubai housing rents to come under further pressure this year","date":"February 13, 2017","format":false,"excerpt":"\r Housing rents in Dubai fell during the final quarter of 2016 and look set to come under further pressure this year.According to property broker Asteco, average apartment rents in Dubai fell by 5 per cent in the final three months and ended the year an average of 6 per\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":38588,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-rents-to-fall-in-2017-as-new-homes-come-to-market\/","url_meta":{"origin":19746,"position":4},"title":"Dubai rents to fall in 2017 as new homes come to market","date":"December 19, 2016","format":false,"excerpt":"\r Thousands of new homes mushrooming up in Dubai's new suburbs and a continued economic slowdown will keep rents falling in 2017, brokers predict.According to property broker Core Savills, housing rents in Dubai's suburbs could fall by up to 4 per cent next year after dipping by up to 5\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":24419,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubai-rents-fall-less-than-expected-in-first-half-as-delivery-of-new-homes-slows\/","url_meta":{"origin":19746,"position":5},"title":"Dubai rents fall less than expected in first half as delivery of new homes slows","date":"August 30, 2016","format":false,"excerpt":"\r Rents in Dubai have fallen less than expected during the first half of the year as an expected glut of new homes coming onto the market slowed to a trickle.According to property agent Asteco, average rents for flats in Dubai fell by just 2 per cent since the start\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/19746"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=19746"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/19746\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=19746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=19746"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=19746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}