Dubai's Jumeirah Lake Towers (JLT) welcomed the launch of a commercial tower modelled on Dubai's iconic Emirates Towers, which developers say will help relieve the shortage of commercial property on the market. According to SABA Properties JLT Chairman, Behrouz Javaheri, Dubai's commercial property market is facing a major shortage with increasing demand and a limited supply planned for the near future, and 47-storey SABA-4 Office Tower will help by bringing 74 office units to the market.
The SABA-4 office tower.
According to studies, Dubai's office real estate market is currently offering among the highest returns in the world while prices are still considered well below the international average. Javaheri explained the requirement for office space will become greater and more urgent as Dubai's businesses continue to grow in size and numbers.
He said: "With Dubai's impressive economic performance, which has picked up massively over the past five years, it is now glaringly obvious that commercial space will be at a premium. Dubai Strategic Plan 2015 portrays an extremely dynamic and vibrant economic future, projecting Dubai's employment to double and Gross Domestic Product (GDP) to reach US$ 108 billion, from the US$ 37 billion registered at the end of 2005. In addition, Dubai's current GDP mix is very favourable, as its strongest sectors are highly conducive to future global growth, while its diversity helps spread the business expansion throughout numerous different industries. This monumental overall economic growth must be accommodated through additional office space, and it will need to happen within the next few years to avoid any negative impact on the pace of growth. Delays in construction, which is currently running at an average of two years, will substantially impact upon the projected supply and demand imbalance."
"Add to this the fact that the majority of office towers slated to be completed within the next 24 months are unlikely to meet their projected completion dates, due primarily to the extreme strain currently being experienced by the construction industry. Current occupancy is around 99% and is expected to stay this high for at least the next two years, after which we predict the commercial sector will experience the same levelling out widely predicted in the residential sector, but at a much slower rate."
"Jumeirah Lake Towers and Dubai Multiple Commodities Centre (DMCC) will almost be complete and developed by the end of 2008, thus all properties, specifically office towers in this area will appreciate significantly. Besides JLT being a prominent and major trade hub for Dubai, the DMCC free zone aspect, plus close proximity to other major economic areas, will further boost its value. Presently, a large portion of Fortune 500 companies are utilising Dubai as their regional hub, and more will be doing so in a near future. These companies will look for top-end quality office space, and we have launched SABA-4 Office Tower to specifically cater for these requirements."
Bryan Wilson, executive director of properties at Dubai Multi Commodities Centre Authority (DMCCA), the master developer for the Jumeirah Lakes Towers (JLT) community, explained: As the first mixed use free zone in Dubai, JLT will cater for the broadest range of knowl