So given the collapse of Dubai’s property market and the lack of international liquidity what is happening to demand for office space in GCC cities? The answer is that in some places it is still going strong, particularly in the business districts of Dubai, Abu Dhabi and Doha. Why? Because the Middle East remains an attractive growth market for many international firms and it is now cheaper to be based there.
Doha in particular is becoming increasingly attractive to firms as the Qatar Financial Centre (QFC) continues to bring in more companies with its clear regulatory structure. On the other hand Dubai’s over ambitious streak means rents have fallen as capacity has increased so life has become a lot easier for those who found rents had trippled over 5 years. I still have more research to do. The article is for MEED.