The fourth quarter of this year will see a massive increase in the delivery of new office space in Dubai.
According to the real estate investment and advisory firm – Jones Lang LaSalle (JLL), an additional 152,000 square meter of gross leasable area (GLA) is anticipated to be delivered in Q4. The amount of GLA for Q4 is three times more than Q3 – 51,000 sq m GLA was delivered in Q3.
The firm also noted that more companies are now demanding for smaller office spaces as the market conditions are becoming challenging with every new day.
Major retail projects
In Q3 2016, many changes were seen as many office projects were utilised for alternative uses – Nova, Moon towers and Le Presidium are a few examples were intended to be used for offices but were later converted to residential or other uses.
The office space in Dubai now amounts to a total of 8.6 million sq m.
Two major retail projects were also delivered in Q3, which included Outlet Village – a community development in Saih Shuaib another community centre in Dubai Silicon Oasis. Both the retail projects provide a total GLA of 28,000 sq m
Shifting trends in 2016
Head of research of JLL Mena, Craig Plumb commented about the change in demand of companies for smaller rental places by saying, “While there remains a strong demand for smaller units, it is taking far longer to negotiate larger deals as companies remain uncertain about their staffing needs”.
Companies are keen to look for smaller office places as the rental budgets are skyrocketing.
Many office towers in Dubai are not catering to the rising demands of companies for smaller offices. Index Tower, which is located in the DIFC is one such office tower; it has divided four of its floors into smaller units which offer suites of 50, 150 and 300 sq m. The office areas are available on a ready-to-lease basis and fully-fitted basis.
11,000 more units are scheduled to enter the market in Q4; the projects include Jumeirah Al Naseem, Dukes Dubai, Nikki Beach Resort and 25,000 apartments and townhouses in Akoya.
Jones Lang LaSalle
Jones Lang LaSalle Incorporated is an investment management and professional services company. Since its launch in 2014, it has established itself as a specialist in real estate sector.
JLL’s headquarters are in America, and it has more than 230 offices operating in 80 countries across the globe. It is a US Fortune 500 company and has over 53,000 employees Q3 2016.
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