DUBAI, 9 October 2006 — Dubai is less expensive than London, Hong Kong, New York and Tokyo, where average office-space prices are more than triple that in the UAE.
Dubai is also one of the most competitive “global” cities in which to rent office-space, despite topping a survey of cities in the Middle East and Africa conducted by Colliers International — one of the top three global property service consultants.
With office-space demand significantly outstripping supply in the Emirates, average net rents for the central business district — high-end (Class A) and premium (Top Class A) office space — was $ 44.86 and $51.65 per square foot annually.
The high cost of renting office-space in Dubai, according to industry sources, is the result of a demand in outstripping supply.
Office rents are expected to stabilize when more than 24 million square feet of office space that is currently under construction — the second highest figure of any city worldwide — comes on stream.
“Despite rising office rent costs, Dubai is still conservatively priced when compared to other major business cities across the globe.
When looking at value for money, Dubai still holds a significant advantage for businesses wishing to setup in the region,” said John Davis, CEO of Colliers International — Middle East.
Other Middle Eastern cities also ranked high in the findings with Doha’s premium office costs averaging $46.88 per square foot and Abu Dhabi’s commercial space demanding $37.94 for the same. Riyadh was considerably cheaper coming in at $21.38 per square foot for the city’s Top Class A properties.