Office landlords in Dubai are offering increasingly attractive incentives, including rent-free periods of up to two years on five-year leases, as they compete for tenants.

As new buildings were delivered in the first quarter this year, rents fell by as much as 45% from the levels of the previous quarter, said the property brokerage Cluttons.

Only 60% of office space in buildings on Sheikh Zayed Road are occupied, the broker says, while Landmark Properties estimates that almost half of Dubai’s office space will be empty by the end of next year, with 2.97m sq m of new space on the market.

The National