The downfall of office rental rates continues throughout the quarter. An annual record showed that there is a 12% decline from last year while the quarterly report displayed a 3% decline. Asteco anticipates that this trend is likely to intensify in part due to the volume of supply expected for handover in the short to medium term, but mainly as a result of uncertainties surrounding the impact of the current pandemic.
There has been a single-digit fall in the rent compared to the previous quarter. Barsha Heights, Bur Dubai, Business Bay, Jumeirah Lake Towers, Sheikh Zayed Road, and DIFC showed a decline of 4%, 3%, 4%, 4%, 3% and 5% respectively.
But compared to the previous year quarter the rental rates have dropped marginally. DIFC has shown a decline of 12%. While Barsha Heights, Business Bay, Jumeirah Lake Towers, and Sheikh Zayed Road showed a drop of 19%, 14%, 20%, and 17% respectively. Bur Dubai has shown a single-digit decline of 9% compared to the previous year quarter.
Office rental rates show a 1% decline compared to the previous quarter (Q4 2019) and more than 5% drop annually.
Typical Building and Shell and Core show a quarterly decrease of 5% and 6% respectively; while Fitted and Low-Quality Building rates drop to 6% and 7%.
Compared to the previous year’s quarter (Q1 2019) decline for Typical Building, Shell and Core, and Low Quality Building is 5%, 6%, and 7% respectively.
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Information Credits: Asteco