Knight Frank office rent market updates for Q1 2021 reveals the lowest recorded rent in Dubai and an increase in Abu Dhabi Prime office rents

Knight Frank office rent market updates for Q1 2021 reveals the lowest recorded rent in Dubai and an increase in Abu Dhabi Prime office rents

Knight Frank has launched its Dubai & Abu Dhabi Office Market Updates for Q1 2021, providing insights on current performance and conditions in the commercial office markets as well as commentary on future trends in those particular emirates.

According to the report, average prime rents across Dubai currently stand at just over AED 200 per sq. feet (psf), 4.2 percent lower than Q1 2020 and the lowest level recorded since Q3 2012. Average office rents citywide wide fell by 7.7 percent, year-on-year. Grade A (AED 120 psf) and citywide (AED 96 psf) rents fell by 9 percent and 8.7 percent respectively between Q1 2020 and Q1 2021.

Looking ahead, Knight Frank reports that the trends of consolidation of space and flight to quality are likely to continue. Occupiers are, where possible, looking to take advantage of weaker market conditions to upgrade occupational space whilst being mindful of increasing total spend. Landlords are expected to remain flexible in order to retain and attract occupiers.