Dubai Office space to double next year

One area not to be involved in property investment at the moment is the Dubai commercial property market. With businesses cutting back, firing staff all over and an estimated 3 million square meters to enter the market over the next two years, rents will have only one place to go – down.

There is currently 3.25 million msq available and a good proportion of that is currently empty so that means the available space will double by the end of 2011. Prices for office space are down at least 50% already, and this is going to add an awful lot more pressure to the market.Office rents in Dubai in all but the most up market developments are extremely depressed.

Abu Dhabi is facing a similar issue, albeit nowhere near as acute as Dubai. 6 million square meters of office space in Dubai sounds like a speculators worst nightmare.