Abu Dhabi prime office rents to fall further

The falling oil price has reduced demand for office space in Abu Dhabi. (Shutterstock)

• Landlords have been cutting rents and offering incentives to tenants, pushing prime office space prices down by 1.6 percent in the first quarter of this year compared to Q1 2017.
• Demand for office space has declined in Abu Dhabi in recent years due to falling oil prices and the subsequent economic slowdown.

LONDON: The cost of renting prime office space in Abu Dhabi has fallen in the last year and is expected to fall further, according to a report by real estate broker Knight Frank.
Landlords have been cutting rents and offering incentives to tenants, pushing prime office space prices down by 1.6 percent in the first quarter of this year compared to Q1 2017, the research found.

FASTFACTS

Grade A and citywide rents declined more sharply, falling by 8.2 percent and 12.9 percent respectively to reach an average of 1,422 dirhams p/sqm and 1,083 dirhams per/sqm.