x Abu Dhabi, UAEFriday 28 July 2017

Tecom hikes Dubai business park rents by up to 43 per cent

Operator of Dubai Internet City, Dubai Media City and Dubai Knowledge Village has raised rents and service charges across the three sites.

Dubai Media City. Silvia Razgova / The National
Dubai Media City. Silvia Razgova / The National

Dubai’s biggest business park is increasing rents by as much as 43 per cent in a move that could hit hundreds of tenants.

Tecom, which operates Dubai Internet City, Dubai Media City and Dubai Knowledge Village has raised rents and service charges across the three sites.

“As we operate in a dynamic industry, it is important for us to adapt to the changing needs and requirements of the market,” TECOM Investments Management said in a statement. “As part of a periodic review of the prevailing market requirements and in order for us to continue enhancing our products and services, a pricing adjustment in service charges and rents has been concluded.”

The sprawling office parks which are home to companies such as Thompson Reuters, Hewlett-Packard and Sony are almost completely full.

Rents in the areas owned by Tecom, a unit of Dubai Holding, rose as much as 35 per cent in 2013, according to JLL, the international property broker.

They beat rises at DIFC (11 per cent), Burj Downtown (14 per cent), Sheikh Zayed Road (27 per cent) and Business Bay (21 per cent).

Emirates Reit, the publicly traded real estate investment trust which owns buildings in the free zone, said the move should boost its revenues.

It said previous rents ranged between Dh108 and Dh135 per sq ft. The new rents are for Dh155 per sq ft.

At the same time service charges have also been increased by 20 per cent to Dh30 per sq ft.

The free zone said in April it was investing Dh1 billion in new building projects, including 255,000 sq ft of office space over the next two years.

scronin@thenational.ae

Follow us on Twitter @Ind_Insights