The steadily worsening condition is said to give commercial tenants sleepless nights.
Alarming Increase in Rental Rates
Industry insiders report that rental rates have risen by as much as 300 percent in some prime areas over the past 24 months. This drastic increase is primarily attributed to a severe demand-supply imbalance within the city’s commercial real estate sector.
Dubai’s business landscape is ringing alarm bells as the cost of office and retail space rentals has surged dramatically.
Sleepless Nights for Commercial Tenants
The worsening rental situation is causing significant distress among commercial tenants, particularly small business owners who often operate on razor-thin profit margins.
Many of them find themselves in precarious situations, either facing eviction notices upon the conclusion of their contracts or being burdened with exorbitant rental rate hikes.
Coping with the Crisis
Small businesses and commercial tenants in Dubai are grappling with the challenge of navigating this rental crisis. The surge in rental costs is prompting a search for viable solutions and strategies to sustain operations in a challenging economic environment.
