Workplace rents in Dubai have persisted to moderate in early 2018 as occupiers. While the VAT implementation so far seems to have no impact on the office market and landlords.
Cluttons stated that while the extent of office market activity remains combined throughout Dubai, its spring office marketplace bulletin shows growing, maturing and a healthy outlook for the world.
It additionally referred to that the introduction of VAT no longer had any real effect on landlord behavior to date. Considering the fact that it was officially released in the UAE on January 1st.
The record showed that headline rents inside the city’s top-tier free zones have remained largely constant.
Faisal Durrani – Head of Research at Cluttons said that “Global economic factors continue to have a direct impact on the real estate market in UAE. In the office market, Upper limit headline rents have been affected by occupiers either sitting tight, re-gearing leases, or continuing to consolidate operations.”
Cluttons also mentioned that overall condition may seem flat, but landlords are not at a stage where they can offer large discounts and incentives.
The director of international Corporate Client Services at Cluttons added that introduction to VAT has no real impact on landlord behavior
Source: Arabian Business