Up to a quarter of Dubai’s office space is empty, with that amount expected to climb further this year as new buildings are completed, according to a report from Jones Lang LaSalle.
An increase in the number of new offices helped push rents down by an average of 25% in the second quarter, compared with the first. That represents a slowing rate of decline from the 45% retreat in rents in the first three months of the year.
'The global economic downturn has certainly been a major factor in reducing the level of demand as many tenants have either downsized, delayed their expansion plans or have waited to see where rents may settle,' said Matthew Hammond, the head of agency at Jones Lang LaSalle MENA.
An additional 2m square feet of office space was delivered in the emirate in the quarter, according to the latest Dubai Office Market Snapshot.