CBRE Predicts Lack of Quality Stock to Keep Office Rents High

The latest report from CBRE Research has predicted that office rents in the UAE are expected to remain high due to a lack of quality stock. According to the report, prime residential real estate in the UAE is expected to provide a yield of 6.25 percent to seven percent in the coming years.

The report also highlighted that the total value of real estate projects currently planned or under construction in the UAE is $409 billion, accounting for 24.4% of total projects in the Gulf Cooperation Council region. The UAE residential market has seen price and transaction volume growth in 2023, with Abu Dhabi expected to see continued growth in transaction volumes in 2024.

In terms of office space, CBRE predicts that occupier activity in the UAE will remain strong, especially for prime and Grade A assets. However, the lack of quality stock in Dubai may lead to a slower rate of rental growth compared to previous years.

In the retail sector, average rents in both Abu Dhabi and Dubai increased last year, with demand expected to remain strong in both markets. However, the lack of quality stock in Dubai is a concern and may lead to a moderation in rental growth rates.

Overall, the report emphasizes the importance of quality stock in driving rental rates in the UAE real estate market and highlights the need for more developments to meet the growing demand for high-quality assets.