Activity remains “muted” in Dubai’s office market, with a majority of districts in the city reporting flat or declining rents, according to Cluttons.
The company’s Spring 2017 Dubai Office Market Bulletin reported declines in top-band rents in 15 out of 23 submarkets monitored and increases in only two: DIFC, where top rents increased by 5.7 per cent year-on-year to Dh370 per square foot and non-free zone space in Dubai Design District.
The submarkets that had the greatest declines were JLT, which had a 22.2 per cent reduction in top-band rents to Dh140 per sq ft; Garhoud, 18.2 per cent, Dh90 per sq ft; and Al Barsha, 18.2 per cent, Dh 90 per sq ft. Lower-band rents fell by 14.3 per cent in JLT and Business Bay – to Dh60 per sq ft.
Faisal Durrani, the head of research at Cluttons, said that activity in terms of the take-up of new office space started to weaken during the second half of 2016.
“By no means would I go so far as to say that it had dried up, but it was weaker than a year earlier,” he said. “I think that … nervousness around the health of the global economy is putting multinationals in a holding pattern. They’re holding off on expansion activities until things become a little bit clearer.”
He said that there had not been a significant increase in the supply of new office space but that in certain areas such as Business Bay, Bur Dubai and Deira more secondary or tertiary space is being delivered.
“To an extent, international occupiers still discount Business Bay as an option for relocation simply because of the strata ownership status. And in places like Bur Dubai and Deira, you’re getting modern, high-spec, grade A buildings for the first time appearing and competing with stock that has been around for a while.”
He said that while there are costs associated with relocating, “occupiers are very much in the driving seat”.
“We’re finding that landlords are offering incentives, rent-free periods [and] contributions to fit-out costs to try and lure people from older buildings into new ones,” said Mr Durrani. “That’s causing a correction in those markets.”
In the prime market, however, there is a lack of space in DIFC and in specific free zones such as Dubai Internet City and Media City.
Demand for space in the latter is being driven by an active technology, media and telecoms (TMT) sector, Cluttons said, in part because of the Dubai government’s efforts to build smart cities and embrace new technologies. Samsung will shortly triple its space in Dubai taking a large presence in Tecom’s Butterfly Building in Media City, while Huawei is having a new Dubai headquarters built for it.
Mr Durrani said TMT “is going to be the star performer of the year” for Dubai’s office market this year.
Speaking at the launch of its Dubai Annual Market Update last week, Nick Maclean, the managing director of CBRE Middle East, said that a polarisation was taking place in Dubai’s office sector, with prime rents maintaining values but rents in the secondary market declining by 12 per cent.
“We see a clear differential now between the better quality, secondary and tertiary markets. The top 10 per cent of the market is actually doing very well but the secondary market is doing badly and the tertiary market is doing very badly,” he said.
mfahy@thenational.ae
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The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
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Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
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Going grey? A stylist's advice
If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”
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Name: Hassan Mohsen Elhais
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The five pillars of Islam
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Killing of Qassem Suleimani
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The five pillars of Islam
RESULTS
Men
1 Marius Kipserem (KEN) 2:04:04
2 Abraham Kiptum (KEN) 2:04:16
3 Dejene Debela Gonfra (ETH) 2:07:06
4 Thomas Rono (KEN) 2:07:12
5 Stanley Biwott (KEN) 2:09:18
Women
1 Ababel Yeshaneh (ETH) 2:20:16
2 Eunice Chumba (BRN) 2:20:54
3 Gelete Burka (ETH) 2:24:07
4 Chaltu Tafa (ETH) 2:25:09
5 Caroline Kilel (KEN) 2:29:14
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Mohammed bin Zayed Majlis
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In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Results:
Men's wheelchair 800m T34: 1. Walid Ktila (TUN) 1.44.79; 2. Mohammed Al Hammadi (UAE) 1.45.88; 3. Isaac Towers (GBR) 1.46.46.
Mohammed bin Zayed Majlis
UAE squad
Esha Oza (captain), Al Maseera Jahangir, Emily Thomas, Heena Hotchandani, Indhuja Nandakumar, Katie Thompson, Lavanya Keny, Mehak Thakur, Michelle Botha, Rinitha Rajith, Samaira Dharnidharka, Siya Gokhale, Sashikala Silva, Suraksha Kotte, Theertha Satish (wicketkeeper) Udeni Kuruppuarachchige, Vaishnave Mahesh.
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – First ODI
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
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Monday, Oct 6 – Second T20I
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
HAJJAN
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THE SIXTH SENSE
Starring: Bruce Willis, Toni Collette, Hayley Joel Osment
Director: M. Night Shyamalan
Rating: 5/5
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Engine: 6.75-litre twin-turbocharged V12 petrol engine
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Transmission: 8-speed automatic
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Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – UAE won by 36 runs
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
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Monday, Oct 6 – Second T20I
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
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