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Average office rents in Dubai fall 6.5% in Q3: Knight Frank

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Prime office rents down by 4.7% during the period

Average office rent in Dubai felt by 6.5 percent during the third quarter of this year, a Knight Frank report revealed. Prime office rents were down by 4.7 percent during the same period.

The report said that businesses in Dubai are looking to take advantage of weaker market conditions to upgrade their occupational space, however, they are also being mindful of increasing total spending amid these difficult times.

In its Dubai Office Market Update for Q3 2020 report, Knight Frank further revealed that Grade A and Citywide rents plunged by 6.1 percent and 7.7 percent respectively during the same period.

Real estate sales transactions in August 2020 jumped 16.7 percent to reach $1.3 billion compared to the same period last year, according to Mo’asher, Dubai’s official sales price index, launched by Dubai Land Department (DLD), in cooperation with Property Finder.

During the period, the Dubai Land Department recorded 2,480 sales transactions with 31.5 percent in the off-plan segment and 68.5 percent in the secondary segment.

Dubai’s real estate sector witnessed the completion of around 14000 residential units during the first six months of this year, despite the Covid-19 crisis. This is about 30 percent of the units that are scheduled to be handed over in 2020.

According to ValuStrat Price Index (VPI) report, second-quarter residential home sales transactions accounted to 4,459 units, down 48.8 percent quarter-on-quarter and 39.3 percent year-on-year with a value of Dh7 billion and an average ticket size of Dh1.57 million.

The sector also recorded its best quarterly performance in six in the first quarter.

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