The office sector in Dubai recorded a decline in rental rates with quarterly and annual drops of -3% and -18% respectively. This is in line with impaired employment/business growth and the prevailing uncertainty regarding the speed of economic recovery.
Despite only recording nominal quarterly rental declines, the office sector remained one of the most challenged asset classes in Abu Dhabi. Landlords instead of allowing for marked rent reductions, increasingly offered incentives related to payment and lease terms such as rent-free periods, service charge waivers, and fit out cost contributions).
On the contrary several grade A and B office buildings experienced a rise in demand from Chinese and Israeli companies looking to establish a base in Abu Dhabi.
Information Credits: Asteco
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