Brokers predict glut of Dubai office space

Landlords in Dubai may miss out on an estimated Dh7 billion (US$1.9bn) in rental revenue within two years because half of all office buildings are expected to be empty.
Analysts predict that supply in the commercial sector will almost double by 2011, as companies are trimming costs and cutting jobs, leading to further falls in commercial rents.

“Office speculators will be hit and lose money. This is good for occupiers,” said Matthew Hammond, the head of agency at Jones Lang LaSalle MENA (JLL).
Landmark Advisory, the consulting branch of the property broker Landmark Properties, estimates that about 2.97 million square metres of new space will hit the market by 2011, versus 3.25 million sq metres today.

Mr Hammond said the figure was in line with JLL estimates. “While the new stock is likely to double the size of the office market, it is substantially smaller than what was planned initially.”