Demand is enormous...
Dubai's popularity as the financial and business hub of the Middle East continues to grow, fuelled by high oil prices and strong economic growth throughout the GCC.
Dubai has become the location of choice for the headquarters and regional offices of many international companies and for regional businesses too.
Between 1000 and 2000 new businesses were established in Dubai in 2007 alone, leading to reported occupancy levels of 99%. As a consequence, rents have risen by 20 - 45% year-on-year in Grade A, B and C commercial space.
Supply has been delayed...
Demand is out pacing supply, a trend likely to continue well into 2009. At US$89 per sq.ft. Dubai rentals are amongst the highest in the world and will continue to rise due to supply shortages. Selling prices, however, are low in global terms, at around US$400 per sq. ft.
Selling prices increased by circa 17% in 2007 and the future outlook is robust.
