Nomura gives grim property outlook

Office complexes set to open in Abu Dhabi and Dubai over the next two years will be seeking occupants in an oversaturated commercial real estate market and 150,000 workers to staff those businesses from a declining population, analysts say.

The Japanese bank Nomura Holdings predicted some 20 million square feet (1.9 million square metres) of commercial space will be completed in Dubai by 2011 along with 10 million sq ft in Abu Dhabi.

“We estimate around 100,000 white-collar jobs at least would need to be created in Dubai and 50,000 in Abu Dhabi alone to satisfy oncoming supply,” said Chet Riley, a Dubai-based analyst at Nomura. “This is in an environment where jobs are being cut.”