Dubai will account for 71% of leasable land in UAE by 2010
Dubai is expected to account for 71 per cent of the total UAE Gross Leasable Area (GLA) by 2010, according to the latest regional report.
Commercial real estate consultants, Colliers International, said in their latest real estate report for the Middle East and North Africa (Mena) region, that Dubai would account for 71 per cent of the total GLA space within the UAE by 2010, GN reported.
It also said Dubai would account for 24 per cent of the total GLA supply in the entire Gulf Cooperation Council (GCC) by 2010.
Dubai, with it's population of around 1.4 million, currently has around the same amount of office space under construction as Shanghai (population 20 million) and Moscow (population 10.4 million), according to the report.
Dubai's GDP at the end of 2007, was registered at $54.3 billion, says the report. A large portion of non-oil GDP growth has been attributed to the blossoming real estate sector in the emirate.
At the end of 2007, the report shows that the total office supply in Dubai was around 26 million square feet. This figure is predicted to increase to approximately 69 million square feet by the end of 2010.
Reflecting Dubai's impressive knack of attracting expatriates, the proportion of foreigners in Dubai is also set to increase to 87 per cent by 2010. The existing supply of office space in Dubai is around 1.47 million square feet GLA and 2.59 million square feet GLA under construction.
This is a massive scale when compared with other global cities such as London and Singapore.
London currently has an existing office space of 17.53 million square feet of GLA and only 0.28 million square feet of GLA under construction.
In Singapore, there is 4.33 million square feet of existing GLA and a further 0.28 million square feet GLA underway to further add to its booming real estate industry.
In Dubai's residential market, rents are varied between developments but generally seeing an increase.
International City remains one of the cheapest residential options, with a studio being Dh45,000 for one year and a two-bedroom apartment being Dh70,000. The report shows studios in Jumeirah Beach Residence, The Greens and Tecom are all Dh75,000 a year.
However, a two-bedroom apartment is Dh140,000 in Jumeirah Beach Residence, Dh130,000 in The Greens and Dh120,000 in Tecom.
Around 160,000 new units are to be introduced into the market by 2010.
Analysts at Colliers International said, "We expect a shortening in advance rent payment as landlords become increasingly competitive."