Dubai freezone office lease rates dive 70 pct

Office lease rates in Dubai’s new freezones have fallen more than 70 percent in some parts and the decline will continue, hurt by sluggish demand and new supply coming on board during a recession.

Leasing rates in the new freezone of Jumeirah Lake Towers (JLT) have fallen between 57 percent and 71 percent from the third quarter of last year until now, a study by real estate consultancy CB Richard Ellis Middle East released on Tuesday showed.

Office space in the JLT freezone has more than doubled to 5.2 million square feet in the same time from 2.5 million.