According to the latest figures released, the official occupancy rates in the Business Bay recorded a fall of 3 per cent during the previous quarter.
The data showed that the occupancy level remained at just 60 per cent, which is the lowest among all of the Dubai's office sub-markets. The Cushman & Wakefield Core UAE's Q2 2016 Dubai Office Report showed that other prime central office locations in Dubai, Sheikh Zayed Road and Downtown also recorded a fall of 6 per cent in the months from April to June, 2016.
David Godchaux, chief executive officer of Cushman & Wakefield Core UAE said, "This is because the area is relatively new and is yet to be fully developed.We see buildings located in the interior of Business Bay facing decreased space take-up compared to the buildings near Sheikh Zayed Road, as a gap in infrastructure and access is yet to be resolved.However, we expect absorption levels to moderately go up as the development nears completion, along with assistance from the burgeoning demand from start-ups."
The official also said that moderate pressure was exerted on the Dubai International Financial Centre (DIFC) official market. The report also found that several factors contributed to a 6 per cent increase in rents during the quarter. High occupancies, stable demand from banking, financial services, and insurance (BFSI) and ancillary sectors as well as supporting regulations and strong stock market all helped boost rents during the quarter.