Lease rates for offices in some of Dubai's freezone areas have fallen by as much as 63 percent year-on-year, a new report from CB Richard Ellis Middle East said on Tuesday.

Freezones which offer benefits including 100% repatriation of capital and profits, multi-year leases, and assistance in labour recruitment have seen demand for office space slump during the global crisis, the report added.

Following the success of freezones such as TECOM and Jebel Ali resulted in the emergence of new freezones at Dubai International Financial Centre, Jumeirah Lake Towers, Dubai Healthcare City and Dubai Silicon Oasis but these are now struggling as demand continues to drop and new units come on to the market, CB Richard Ellis said.

arabianbusiness.com