265,000 sq.ft of new office demand in Dubai during Q3

265,000 sq.ft of new office demand in Dubai during Q3

Dubai | Abu Dhabi: Office rents in the UAE’s two largest business hubs – Dubai and Abu Dhabi – remain resilient, however demand for Grade A office space is continuing to rise, along with occupancy levels, according to the latest analysis global real estate consultancy, Knight Frank.

Faisal Durrani, Partner – Head of Middle East Research, explained: “With 265,000 square feet of new office requirements during Q3, our data shows that Dubai has seen 739,000 square feet of new office demand so far this year and is on track to surpass the 1.1 million square feet of requirements we registered in 2021.

“The biggest challenge for the market is however a shortage of prime Grade A space. With just 2.9 million square feet due to complete between now and 2025 and with Grade A occupancy levels hovering at around 90% on average – even higher for some of the most sought-after buildings – occupiers entering the market or looking to expand are faced with a very limited number of options”.

Excluding confidential requirements, Knight Frank says business services tenants are responsible for the bulk of Dubai’s new office new demand, together accounting for 97,000 sq.ft of space requirements during Q3. Barsha Heights (31,000