The barren conditions for economic growth that the city is facing has led to slow business development and growth. Expansion of offices or opting bigger spaces have been low during this period.
The consequences are increased demand for co-working office spaces, fully fitted office spaces or serviced offices.
The office rental rates are further expected to decline well into the coming quarters of 2019.
The average office rental rates for Abu Dhabi have plummeted by 2% in Q1 2019. When compared to the previous year’s same quarter, the office rates have declined by 5%. Certain low and mid quality office buildings have faced a downfall of 13% in their rental rates over the past year.
Due to the tight demand, landlords continue to provide incentives like discount rates on renewal of the contract.
Information Credits: Asteco