Abu Dhabi offers more alternatives to tenants
Abu Dhabi , August 6, 2013
The Abu Dhabi office market continues to mature, with further new developments being completed this year. This is offering more alternatives to tenants looking to relocate, said a new report.
In addition, the announcement of the Global Market Place Freezone at Sowwah Square will provide greater opportunities to occupiers when looking to structure their Middle Eastern businesses, said the report released by Knight Frank.
Occupiers are looking at new locations outside of downtown in order to find offices which are closer to the new residential communities where staff now resides. These locations provide better access, less congestion and more amenities. There has also been a growing change in landlord attitudes towards the marketing of their properties as the market becomes more competitive, it said.
Matthew Dadd, associate director, Knight Frank Dubai, said: “The office market has been transformed over the last four years, as occupiers looking to relocate in Abu Dhabi previously did not have options in terms of location, specification and amenities’’.
Tenants are taking longer in securing accommodation as they review the increasing options in the capital. Occupiers are increasingly aware that the market has developed and that business dynamics have changed which need to be understood before relocating.
Continued investment in the economy by the government has sustained real estate activity and absorption of additional supply. Prime headline rents have remained broadly unchanged in the first half of 2013, although greater incentives have been offered, according to the Knight Frank report.
Supply has continued to increase across Abu Dhabi with a multi-tiered market developing further. Delays in the handover of new developments have also impacted on headline vacancy levels, which are at 37 per cent, 13 per cent lower than neighbouring Dubai. The limited movement in prime rents during 2012/ H1 2013 has brought a degree of stability to the Abu Dhabi office market, it said. - TradeArabia News Service
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