(MENAFN- Khaleej Times) Occupancy costs for premium office space in the DIFC in Dubai remained largely unchanged over the past year at $94 (Dh345) per square foot per year (this figure includes the net rent plus additional fees and service charges). This places Dubai behind London (West End: $193; City: $108) and at a similar level to other second tier cities within Europe such as Stockholm ($94) and Moscow ($89), but ahead of other leading cities such as Frankfurt ($73) and Paris ($52).
Toby Hall, head of office and business space leasing, UAE, JLL, said: "The DIFC in Dubai is a great example of a market which offers premium office space in a competitive city which attracts global talent and innovation. The demand to have more premium office space has significantly increased and we will be observing an upsurge in supply of improved quality space across Dubai over the coming few years," he added.
Occupancy costs for premium space have increased by an average of four per cent in USD terms during 2017, but this is not the case in Dubai, where no increase was recorded during 2017.
As with other global markets, the level of vacant space within premium buildings in Dubai remains below that in the general market, illustrating the demand among tenants for space in the best quality buildings.
While there is greater occupier choice in the overall market, space in premium buildings remains limited, with vacancies in premium buildings remaining below five per cent in Tokyo CBD, Hong Kong and London. The same trend is apparent in Dubai, with vacancies in the premium space in the DIFC and the CBD far below that of peripheral office sub-markets with inferior quality space.
The shortage of premium space in the DIFC has encouraged developers to commence or complete a number of new projects in this location in recent years. The most prominent of these is ICD Brookfield Place, which is being developed in a joint venture between the Investment Corporation of Dubai and Brookfield Property Partners.
The Eurozone offers the most competitive costs globally for premium space, averaging $63 per square foot per year, compared to $85 in the Americas and $111 in Asia Pacific. Warsaw ($40), Brussels ($48), Amsterdam ($49), La Dfense, Paris ($52) and Berlin ($56) are named as some of the best value-for-money markets in Europe.
Outside of the Eurozone and the Middle East, the most expensive premium office rents globally are found in Central Hong Kong ($323), New York's Midtown ($194) and Beijing, Finance St ($190).
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