World Economy

Dubai Office Rents Declining

Dubai Office Rents DecliningDubai Office Rents Declining

On average office rents across Dubai fell 4.5% in the second quarter of the year, with the performance of prime and secondary markets continuing to diverge, said global real estate consultancy Knight Frank in a new report, TradeArabia reported. Market activity has remained relatively subdued in the first half of the year, added the report titled “Dubai Office Review Q2 2017”. Dubai’s GDP increased by 2.9% in 2016, down from 4.1% in 2015. Lower oil prices, higher interest rates and a strong US dollar have underpinned the slowdown in GDP growth. As the economy adjusts to the new norm in oil prices and diversifies in line with Dubai Plan 2021, the slowdown in GDP growth is expected to bottom out in 2017 and begin to strengthen in 2018. Employment is forecast to grow 1.63% in both 2017 and 2018. Business sentiment remains upbeat with the purchasing managers index remaining positive at 55. Dubai’s commercial occupier market saw lackluster performance in 2016 as a result of slower economic growth.

Add new comment

Read our comment policy before posting your viewpoints