According to a new report by real estate consultant JLL, new government announcements to reduce the market fee imposed on businesses from 5% to 2.5% and to allow 100% foreign ownership outside of free zones could stimulate additional demand in the Dubai office market.
This quarter, the Dubai Government has made several announcements designed to promote foreign investment and investor confidence, which is likely to boost demand in the office market in the medium term, says JLL's latest report.
“These new government announcements should help improve market sentiment and have the potential to directly increase investment and office occupancy across the emirate.
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,” said Craig Plumb, Head of Research, JLL MENA.
“Although there were no office completions this quarter, the availability of space increased across the CBD over the past year, with around 10% of the current stock being vacant.