Dubai: Office space in Dubai is expected to grow by 250 per cent
within three years to 110 million square feet, a leading property
services firm said.
At present the city has 32 million square
feet of office space and almost all of it is occupied, resulting in
high rents as growing working population puts more pressure on the
available properties.
"Only a limited proportion of new supply will meet the needs and requirements of multinational companies," Maclean said.
Shaikh Zayed Road and the Dubai International Financial Centre are the most expensive business locations in the city, followed by Dubai Festival City.
A correction at all rental levels is expected as new supply of offices becomes available.
Dubai faces a shortage of both residential and commercial space.
Based
on the number of residence visas issued, the city's population of 1.67
million is growing by 300,000 a year. If this pace continues, the
population is projected to grow to 4.1 million by 2015.
If
construction delays are "at a minimal," 170,000 new residential units
will be available between 2008 and 2010, according to CB Richard Ellis.
The demand for residential units is estimated at 70,000 per year against a delivery of 57,000 units.
Maclean
said Dubai's property sector growth is sustainable if economic growth
continues and expatriate numbers continue to rise at current levels.
But
competition from construction within the region and slow infrastructure
growth could undermine the city's property sector, he added.
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