Abu Dhabi office rents have fallen 8% Q-ON-Q in 2011 and 29% from Q1 2010
14 Apr, 2011, Dubai
A new Cushman & Wakefield report, A Guide to the Abu Dhabi Office Market Q1
2011 prepared for Cityscape Abu Dhabi 2011, focuses on the Abu Dhabi office market. It
The Abu Dhabi office market continues to change, driven by new space entering the market, evolving local property regulations and ongoing economic uncertainty in the region. Increased competition between developers and landlords has resulted in a further softening of rents since the beginning of 2011 according to the latest report from Cushman & Wakefield Middle East.
‘A Guide to the Abu Dhabi Office Market’, released to coincide with Cityscape Abu Dhabi, takes an in-depth look at each of the 12 defined office submarkets in the city. The report makes sense of the fragmented and fast moving commercial real estate market in the UAE capital. With the new business districts and commercial office space rising from the reclaimed islands of Reem and Sowwah, to the traditional areas of the current Commercial Business District behind the Corniche and Khalidiya, the capital is emerging as one of the principle business locations for International companies looking to establish themselves in the region.
Perhaps surprisingly, prime rents on the Island itself vary only slightly from district to district, ranging between AED 2,000 to 2,300 per sq m pa in the most desirable buildings. The report finds that the primary reason for variance in rentals is not the location but the individual buildings themselves including their build quality and facilities, for example, parking allocation and maintenance.
A lack of Grade A space has limited the gap between rentals of the best space and the secondary market, however, Cushman & Wakefield expects this to change appreciably with the impact of the new developments coming on stream later in 2011 and early 2012.
David Quinn, Head of Agency Cushman & Wakefield Middle East said today that: ‘As a result of the research conducted for this report we believe that many occupiers remain reluctant at this point to commit to a major relocation until the first phases of the major office developments come to the market’.