Barring Dubai Design District, Dubai office rents fell across the emirate in the first quarter of 2019 with market strongly favouring tenants, a new study stated.
According to the latest research by Savills on Dubai office rents, Dubai Science Park recorded the highest decline of 11.3% in the first quarter, followed by the old Dubai areas of Bur Dubai and Deira where rents dropped 11.1% and 6.7%, respectively. In most other areas, Dubai office rents fell between 3 to 6%.
However, office rents at Sheikh Zayed Road, Al Barsha, Tecom, Dubai Internet City, Dubai Media City, Dubai Knowledge Village, Dubai Studio City, Dubai Silicon Oasis, Garhoud and One Central remained stable.
Dubai Design District bucked the trend as office rents jumped 13.8% in the last quarter.
Average Dubai office rents at the Dubai International Financial Centre were the highest at approximately Dh200 per square foot annually. Dafza and Downtown Dubai office rents averaged Dh135-Dh170 per sqft, while it was at Dh160 in Media City and Internet City. Sheikh Zayed Road averaged Dh140.
Earlier, ValuStrat had said that median office asking rents declined by 4.4% year-on-year in the first quarter.
The citywide median asking rent for a typical office size stood at Dh90 per square foot. Commercial office occupancy in Dubai was estimated at 84%.
Going forward, Savills expects Dubai office rents will favour occupiers as supply continues to outpace demand in 2019 with an increasing trend towards co-working spaces catered towards startups and tech entrepreneurship, where open desk spaces offer more cost-effective solutions for fledgeling companies.