With a group of new companies entering the emirate's market

Savills: Dubai witnesses demand for office space during the first quarter of 2023

  • High levels of demand with the availability of a limited number of rental spaces have led to an increase in rents in Dubai. Cinematographer: Patrick Castillo

  • Paula Walsh: "Some new tech companies have leased space, resulting in a net increase in occupancy levels across Dubai."

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Savills, a global real estate consultancy, has revealed that more companies want to launch their business in Dubai, which has led to an increase in the demand for office space, especially first-class assets.

In a report on the office market in Dubai for the first quarter of 2023, the company stated that leasing activities were mainly affected by mergers and new companies responsible for 40% of the total of these activities, pointing out that the sectors of: technology, media and communications, banking and financial services, and insurance, witnessed the largest activity in this context.

According to the company, high levels of demand and the availability of a limited number of rental spaces have led to an increase in rents, with Category I projects in various locations seeing a quarterly increase of 2%, while the DIFC market saw an increase in rental value by 11%.

Paula Walsh, Director of International Corporate Services at Savills, said: "Tech companies in Dubai are focusing on choosing the right office space to reduce costs, amid the global trend of reassessing the requirements of the sector, from hiring to real estate, yet some new technology companies have leased space, resulting in a net increase in occupancy levels across the emirate."

Swapnil Pillay, Middle East Research Partner at Savills, said: "A limited number of office spaces, particularly Category A, will be available over the next three quarters across the emirate.