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Commercial Property in Dubai takes off

It seems very clear that the Real Estate developments in Dubai and specially the commercial office price are skyrocking. From 625 per sq foot starting in Year 2006, now have reached an average of 2,200 AED/sq ft.The demand from overseas and local corporations is growing which desire to own their office space instead of renting them. Commercial rents have dramatically increased to unprecedented levels in New York; London and Singapore. The cost per sq foot is high and should continue to grow. Many companies are planning to relocate to the Gulf and UAE as well as other Emirates then Dubai or even to another GCC country to reducing costs.

By owning their own office, businesses will create an asset to their company and would be able to get leverage from their financial institution at a double win. When you ask where it will stop, investors would tell you to not be worried for the next 5 years until time of delivery of the property. Business Bay, the Manhattan of Dubai will have 180 dedicated plots with 80% of commercial building close to the tallest tower, the Burj Dubai. Sky rocking price on commercial have good days in front and speculators will continue to play the shortage to obtain their leverage very well.

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Commercial Property in Dubai takes off - It seems very clear that the Real Estate developments in Dubai and specially the commercial office price are skyrocking.

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