Dubai office market defies global slump with influx of tenants

Dubai office market defies global slump with influx of tenants

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Dubai continues to defy a slump in the commercial real estate market that’s battered occupancy rates and rental yields around the world.

“There’s strong demand for the central business district, which reveals that customers prefer high-quality offices in a prime location,” Abdulla Belhoul, chief executive officer of Tecom Group, told reporters on Wednesday after the company reported a 6 per cent increase in revenue.

“We also continue to see strong interest from multinational companies looking to expand their footprint in Dubai and the region,” he said.

The company, whose tenants include Meta Platforms and Alphabet, said second-quarter revenue rose to Dhs535.1m ($146mn). It added more than 1,500 new tenants in the first half of the year, and occupancy rates stood at 87 per cent, according to a regulatory filing.

Dubai commercial property market saw average occupancy rates rise to 92.7 per cent

An influx of companies setting up in Dubai has bolstered the city’s commercial real estate market and helped end a multi-year property slump.

Average occupancy rates rose to 92.7 per cent from 84.8 per cent in the second quarter “on the back of increased demand and limited availability of quality supply”, according to recent report by CBRE Group.

Average rents for prime