Office rents in prime areas of Dubai are set to rise this year after five years of falling accommodation costs, according to a forecast by Jones Lang LaSalle.
The property broker predicted yesterday that there will be potential for long-awaited rental growth this year – although it will be limited to office buildings with high occupancy rates in Dubai’s best areas, according to Jones Lang LaSalle’s review of the last quarter of 2012.
The agent, which monitors 6.9 million square metres of offices in Dubai, found that average headline rents in the best offices in the city rose 3 per cent during the final three months of the year compared with the previous quarter and are set to rise higher this year.
Jones Lang said that the highest open market office rents in Dubai stood at Dh2,370 (US$645) per square metre in the Dubai International Financial Centre and Dh1,615 per square metre elsewhere in the city centre.
However, it added that offices in secondary locations were likely to suffer further rent falls this year.
The agent said the increase in prime office rents was likely to be brought about by a decrease in the amount of new office stock coming to the market. It said the total amount of office space completed last year stood at 570,000 square metres, 45 per cent less than the amount completed in 2011.
Robin Pugh, the head of agency at Jones Lang for the Middle East and North Africa, said that as a result of a number of projects being delayed at the final completion stage, there remains “around 1.2 million square metres of additional supply that could complete in 2013”. However, he added: “In reality, the future supply pipeline is likely to be somewhat lower.”
Almost 50 per cent of office supply in 2013 and 2014 will be in Business Bay, said the report. Other locations expecting new projects are Dubai World Central, Jumeirah Lake Towers, Sheikh Zayed Road, the DIFC and Silicon Oasis.
Just over half of the existing office stock (about 52 per cent) is concentrated in onshore locations while the remaining 48 per cent is located in free zones.
Meanwhile, Jones Lang predicts that the recent announcement of a cap on UAE mortgage lending and the significant levels of new supply scheduled this year are likely to limit price increases below the levels reached last year.
“The overall residential market has recorded a positive year, with the villa market continuing to outperform the apartment sector,” said Craig Plumb, the head of research at Jones Lang’s Dubai office.
lbarnard@thenational.ae
ARABIAN GULF LEAGUE FIXTURES
Thursday, September 21
Al Dahfra v Sharjah (kick-off 5.35pm)
Al Wasl v Emirates (8.30pm)
Friday, September 22
Dibba v Al Jazira (5.25pm)
Al Nasr v Al Wahda (8.30pm)
Saturday, September 23
Hatta v Al Ain (5.25pm)
Ajman v Shabab Al Ahli (8.30pm)
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Nag%20Ashwin%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EPrabhas%2C%20Saswata%20Chatterjee%2C%20Deepika%20Padukone%2C%20Amitabh%20Bachchan%2C%20Shobhana%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E%E2%98%85%E2%98%85%E2%98%85%E2%98%85%3C%2Fp%3E%0A
The Specs
Engine 3.8-litre, twin-turbo V8
Transmission: eight-speed automatic
Power: 582bhp (542bhp in GTS model)
Torque: 730Nm
Price: Dh649,000 (Dh549,000 for GTS)
if you go
The flights
Direct flights from the UAE to the Nepalese capital, Kathmandu, are available with Air Arabia, (www.airarabia.com) Fly Dubai (www.flydubai.com) or Etihad (www.etihad.com) from Dh1,200 return including taxes. The trek described here started from Jomson, but there are many other start and end point variations depending on how you tailor your trek. To get to Jomson from Kathmandu you must first fly to the lake-side resort town of Pokhara with either Buddha Air (www.buddhaair.com) or Yeti Airlines (www.yetiairlines.com). Both charge around US$240 (Dh880) return. From Pokhara there are early morning flights to Jomson with Yeti Airlines or Simrik Airlines (www.simrikairlines.com) for around US$220 (Dh800) return.
The trek
Restricted area permits (US$500 per person) are required for trekking in the Upper Mustang area. The challenging Meso Kanto pass between Tilcho Lake and Jomson should not be attempted by those without a lot of mountain experience and a good support team. An excellent trekking company with good knowledge of Upper Mustang, the Annaurpuna Circuit and Tilcho Lake area and who can help organise a version of the trek described here is the Nepal-UK run Snow Cat Travel (www.snowcattravel.com). Prices vary widely depending on accommodation types and the level of assistance required.
About Karol Nawrocki
• Supports military aid for Ukraine, unlike other eurosceptic leaders, but he will oppose its membership in western alliances.
• A nationalist, his campaign slogan was Poland First. "Let's help others, but let's take care of our own citizens first," he said on social media in April.
• Cultivates tough-guy image, posting videos of himself at shooting ranges and in boxing rings.
• Met Donald Trump at the White House and received his backing.
At Everton Appearances: 77; Goals: 17
At Manchester United Appearances: 559; Goals: 253
