According to global property consultancy Knight Frank, the Dubai commercial office market has continued to witness an increase in office accommodation, in excess of levels of demand.
This has resulted in city-wide vacancies in the broader market above 50%. A positive result is tenants taking advantage by consolidating and upgrading their accommodation.
Prime headline rents remain stable across Abu Dhabi, although greater incentives have been offered, according to a report by Knight Frank. The firm expects in the region of 500,000 square metres of prime and Grade A office space to be delivered in 2012.
New master–planned developments provide occupiers with full amenities including hotels, restaurants, and conference facilities and better parking ratios therefore providing comparable quality to Dubai and other international markets.
“Proactive landlords who get ahead of the curve will be more successful than those who chase the market,” said Matthew Dadd, associate, Knight Frank.
“Tenants are demanding further incentives and inducements to relocate to new developments from older buildings and villas under historic statutory protected rents,’’ he added.
With GCC interior design spend forecast to reach US$56 billion in 2012, according to Ventures Middle East, the 11th edition of The Office Exhibition is attracting participation from international firms dealing in office design as well as a host of first-time exhibitors.
With representation from almost every continent in the world, the show will reveal over 140 new-to-region products and a wide array of award-winning designs.
Against a backdrop of depressed or flat home economies, the recovery trend in certain GCC real estate segments is influencing top international interior brands to target the Middle East. With more than US$300 billion worth of major projects to be awarded across the Middle East by 2012 , event organiser dmg :: events is confident The Office Exhibition 2012 will deliver opportunities for participants to tap the anticipated market growth in the regional office segment.
As regional demand for efficient, world-class design in offices and commercial developments gathers pace, so too does demand for sustainable products at The Office Exhibition. In 2012, the regional architecture and design community will be able to source expert opinion and products to help with obtaining GreenGuard certification and LEED accreditation of their projects.
The show will broaden its offering to include health and education suppliers to meet the regional growth in both these sectors
According to consultants McKinsey & Co., the total health care spending in the GCC is forecast to reach US$60 billion by 2025 while Saudi Arabia’s 2011 budget, the largest ever, highlighted a spend of US$100 billion in education and infrastructure projects.
“The GCC commercial fit-out and office refurbishment segments are poised for exponential growth in the coming years. Both Qatar and Saudi Arabia have revealed plans for big infrastructure projects, which will require supporting commercial real estate, while in the UAE we continue to see businesses take advantage of the declining prices in prime office space and investing significantly in their interiors.
“With the Office Exhibition attracting visitors from across the wider Middle East and even Africa, it is the only gateway through which to reach vast numbers of business opportunities that exist in the region,” said David Wilson, event director.
With The Office Exhibition around the corner, scheduled for May 15-17, 2012, at the Dubai World Trade Centre, Commercial Interior Design speaks to the office suppliers you should know.