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DIFC still in demand with commercial property levels helping it to remain attractive

Commercial rental rates in the DIFC are faring better than many other business locations in the emirate, says the report from global property consultancy CB Richard Ellis.

Many international corporations have set up their regional bases in the DIFC over recent years and rents ad reached a high of AED750 per square foot before falling away over the last two quarters of 2008. Space is now available for around AED450 per square foot direct from the DIFC, although some private landlords are offering further reduced rates, the report said.

'The DIFC is in a prime location, has excellent facilities and high quality office space, which generates considerable demand,' explained Mat Green, associate director, Research for CB Richard Ellis.

'This was made apparent by the lengthy waiting list for space in 2008 and the consistent level of demand that has been seen since opening in 2004,' he added.

Additional developments at the DIFC are set to be completed this year, including Currency House and The Index, with further projects to come online, depending on market conditions, Green said.

These will include the environmental friendly development, The Lighthouse, which will use natural energy to off-set the energy cost used in the desalination process of its water, as well as The Buildings by Daman and Emirates Financial Towers.

'The DIFC and wider Sheikh Zayed Road area is set to be the Central Business District in Dubai for years to come. With the Business Bay development coming online, new roads being built and the completion of the Metro, this creates a solid case for investment over the other office locations,' said Green.