Dubai office space may be a good place to invest your money, according to real estate investment specialist, JLL.
In a new report, the company says two key announcements made in the second quarter of 2018 are likely to boost demand for office space in the city in the medium term.
These include a reduction in the fee charged on businesses by Dubai Municipality from 5% to 2.5% and the relaxation of existing regulations to allow 100% foreign ownership in businesses outside free zones.
“These new government announcements should help improve market sentiment and have the potential to directly increase investment and office occupancy across the emirate,” said Craig Plumb, Head of Research, JLL MENA. “The potential surge in foreign investment, particularly from businesses operating in the non-oil sector, could ultimately lead to a boost in demand for quality commercial space.”
Plumb said the amount of office space available in the central business district has increased over the past year and around 10% of stock is vacant. Demand may start to increase as the new foreign ownership rules come onto the statue books.
JLL recently singled out Dubai for its improved level of market transparency in its latest JLL Global Real Estate Transparency Index.
The company commended initiatives such as the building classification project, improved regulatory procedures, new and enhanced online apps for managing contracts and broker information, and unified lease forms.
While Dubai wasn’t individually ranked in the report, which looks at countries as a whole, the UAE moved up eight places to 40th out of 100 markets covered in the index.