MARKET UAE COMMERCIAL — Q1 2021 IN MINUTES Dubai Office Market Savills Research – The office market in Dubai has been – A prolonged uncertainty around sustained dynamic over the last three months, global economic recovery has led continuing a trend which started in Q4 companies to prioritise flexible leasing 2020. options. This has increased the demand for co-working and serviced office space. – Dubai has emerged as the location of The sector is poised for growth as it The Central Bank of the UAE projects real GDP choice, especially for tech companies, keen expands in the region benefitting from to expand in the region. More interestingly to recover to positive growth of 2.5% in 2021, companies limiting their spend on capital with non-oil GDP growing by 3.6%. it is also now being considered as a viable expense (CAPEX). alternative to many European cities due to A growth in hybrid working models and an its handling of the pandemic, balancing an increase in the number of start-ups will act effective inoculation drive, whilst keeping as a further catalyst going forward. the Dubai economy open for business. – There has been an increase in the number – After a year of remote and hybrid working, of companies that have reduced their most corporate occupiers are taking a office space across whilst relocating to longer term view on their real estate newer high-quality developments as they requirements. Occupiers are more adopt hybrid working models. Their new proactive and now initiate discussions office space, in many cases 30% to 40% Strategic partnerships and agreements between with landlords on lease renewals / government entities continue as the Emirate pushes smaller than their previous take-up, helps ahead with its long-term development strategies. restructuring – in most cases well in to balance a reduction in size against the advance of their lease expiry, based on higher rental levels of better quality and their future real estate strategy. more sustainable space. – Employee wellbeing remains a priority for – Rental values have continued their most corporate occupiers and it’s reflected downward trend across secondary office in their real estate strategy. While demand buildings and submarkets in the city for Grade A space has remained as the however central mature Free Zones and preferred option, occupiers are now Grade A developments have seen rental evaluating the ESG (Environmental, social values stabilise. and corporate governance) compliance of the space they occupy and are demanding Dubai has launched a new strategy to double more sustainable, efficient and healthy companies and jobs in the creative sector and aims environments. to double the creative industries’ GDP contribution to 5 per cent of Dubai’s economy by 2025. DUBAI OFFICE RENTS Q1 2021 UPPER LIMIT LOWER LIMIT DUBAI SCIENCE PARK DUBAI SILICON OASIS* DUBAI STUDIO CITY DUBAI INVESTMENTS PARK IMPZ/DUBAI PRODUCTION CITY DUBAI FRINGE DUBAI SOUTH* DAFZA* GARHOUD DEIRA HEALTHCARE CITY* OLD DUBAI BUR DUBAI DUBAI DESIGN DISTRICT (D3) NON-FREEZONE DUBAI DESIGN DISTRICT (D3) FREEZONE* ONE CENTRAL NON-FREEZONE ONE CENTRAL FREEZONE* DIFC SHEIKH ZAYED ROAD CENTRAL DUBAI DOWNTOWN DUBAI BUSINESS BAY AL BARSHA DUBAI MARINA AL BARSHA HEIGHTS TECOM DIC/DMC/DKV* NEW DUBAI JLT 0 50 100 150 200 250 300 350 *FREE ZONE SOURCE SAVILLS RESEARCH Dubai Office Market Q1 2021 Y-O-Y CHANGE (%) STABLE DEIRA DOWN DAFZA GARHOUD BUR DUBAI Savills Team HEALTHCARE CITY Please contact us for ONE CENTRAL further information DUBAI DESIGN DISTRICT DIFC BUSINESS BAY DUBAI SILICON OASIS Swapnil Pillai SHEIKH ZAYED ROAD Associate Director DOWNTOWN DUBAI Research +971 4 365 7724 DUBAI SCIENCE PARK [email protected] AL BARSHA AL BARSHA HEIGHTS Paula Walshe Director, International TECOM DIC / DMC / DKV DUBAI PRODUCTION CITY Corporate Services DUBAI MARINA +971 4 365 7731 DUBAI STUDIO CITY [email protected] JLT DUBAI INVESTMENT PARK Charlie Sargent Associate, International Corporate Services +971 4 365 7732 [email protected] DUBAI SOUTH Henry Mathews Transaction Executive, International Corporate Services +971 4 365 7734 [email protected] Savills plc: Savills plc is a global real estate services provider listed on the London Stock Exchange. 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