Al Mazaya index reports value of office sales in GCC increases 38.8% in September

With the high demand for offices in Dubai comes a correlated shortage in supply, with dedicated commercial property projects such as Business Bay and Dubai International and Financial Center and other places near to Sheikh Zayed Road becoming the most sort after locations in the emirate for investors and businessmen who are looking to establish or develop their businesses in the UAE.

High office space demand is not a phenomenon unique to Dubai, but is also evident in other emirates including the nation's capital of Abu Dhabi. This emirate is witnessing the construction of around 415 thousand m2 of office spaces, contributing to the doubling of the overall office space to 850 thousand m2 by the start of 2011.

Adding to this, Al Mazaya Real estate Index report showed that the prices of offices sales saw decrease in average prices during September across the GCC while the deal of volumes increased by 42.2%, while the value of sales increases to 38.8% - due to the nature, area and location of the offices included in sales. The successful sales are being viewed by industry insiders as 'encouraging', as the market traditionally relied on rental investments as a main source for revenue - and is yet somewhat less developed as its European counterparts when it comes to ownership.

'The trend in the property market these days is to balance supply and demand to satisfy the market need especially in the offices sector. The decrease or increase in the value of average prices in the office sector does not negate the fact that there is still a wide demand for offices in the GCC. A drop in demand does not necessarily equate with a lack of need.

This situation urges property developers to compete and distinguish to deliver the finest, modern and most appropriate projects featuring outstanding designs, modern technologies, accurate implementation and other quality standards in addition to commitment to delivery dates, because the current situation cannot accommodate any more delays,'

said Eng Salwa Malhas, Al Mazaya Executive Vice President for Business Development.

Malhas states that the GCC property sector is experiencing a rapid growth, fueled by population growth an increase in national income, affluence in economic performance, the modernization in its legislations and laws and the development of a fiscal vision which can facilitate further investments into their markets. Malhas stressed that the continuation of such a situation will have a positive effect on the entire region.

Malhas stressed that the increasing demand on office spaces and a shortage in launched ones has increased rental values and made investors keen to buy all available office units, urging property firms to initiate more construction works for projects that will satisfy market demand need for such commercial units.

'Al Mazaya aims to benefit from every opportunity that may arise, where it is feasible to have those projects. Within our expansion plans, we don't want to compete and deliver the best only, but we want to consolidate our position as the main property player in the whole Arab market,' she added.