x Abu Dhabi, UAEThursday 20 July 2017

Commercial rents fall in central Dubai

Figures from CBRE published at this week's Cityscape exhibition in Dubai made grim reading for those in the commercial property sector.

Figures from CBRE published at this week's Cityscape exhibition in Dubai made grim reading for those in the commercial property sector.

The global commercial property services firm reported that average office rents for the emirate's central business district fell in the third quarter for the first time in six quarters.

Office rents fell 4 per cent during the three months to the end of last month, standing at an average of Dh1,453 (US$395.57) per square metre as new office schemes, planned in the boom years, were finally completed.

CBRE said the number of new commercial and professional building licences issued increased from 7,001 in the first six months of last year to 8,676 in the same period this year.

The range of rental prices also increased, reflecting a disparity between new and old office space in the city.

The market for emerging areas of Dubai such as Business Bay and Jumeirah Lake Towers, with a glut of new offices, showed signs of stabilising, with still-high vacancy rates sliding.

For Dubai's housing market, however, it was a different story with total residential sales transactions during the third quarter reaching 2,876 - an 82 per cent increase on the previous year.

Apartment rents grew about 7 per cent in the quarter over the previous year period, while villa rents gained about 8 per cent.

lbarnard@thenational.ae