Third Party Developements Commercial Space Demand Rise

DIFC Gate District can boast occupancy level of over 95% for its 1.217 million square feet of leasable commercial. To the same time frame, third-party developments had leased around 58% of their office space. As more space become available, such as the soon to be released Park Towers DIFC, DIFC registered companies are looking to move out of the more expensive DIFC’s own buildings and into the third party space.

There is also another aspect that will force the demand for space in DIFC further. Recent rules being enforced stipulate that any company registered by a free zone has to have a presence in that free zone and, therefore, it has always been mandatory for any DIFC registered company to be located in the centre or it would lose its registration. In the past, due to lack of space, a number of DIFC-registered companies were allowed to conduct business outside of the DIFC free zone. However, this is no longer permitted.

All in all, this has to be a major factor for strength in rents and property values within DIFC when other parts of Dubai are not fairing so well.