Increased demand for UAE office take up as eurozone remains stable
12/21/2011
admin
Dubai office occupier activity has been buoyant in the third quarter of 2011 with the market seeing a significant upturn in lease enquires but the eurozone crisis has not damaged demand in Europe which is stable, according to the latest research from CBRE.
Dubai has seen current demand increase in the third quarter of 2011 with existing companies either looking to expand their activities, or from occupiers located in older areas of the city seeking more central areas, the report shows. The Dubai International Financial Centre and ‘TECOM’ freezones were particularly in demand this quarter, resulting in a sharp reduction in local vacancy rates.
In Abu Dhabi many occupiers are considering deferring relocation decisions until 2012, when a considerable amount of new supply will become available to the market. This is also due to the rising vacancy rate keeping rents competitive, albeit the rate of rental decline seems to have slowed recently.
Take up in the European market office in London and Paris soared by 26% and 46% respectively in the quarter as office leasing transaction levels hit a 2011 peak. Despite the weakening economic outlook, occupier demand across European office markets remained roughly stable compared to the same period last year.
Source: PropertyWire.com