Oversupply exerts pressure

Abu Dhabi_While the capital's residential sector is under pressure due to undersupply, its office sector struggles to keep up with demand, according to Jones Lang LaSalle.

However, short-term leasing is gaining popularity with providers such as Servcorp registering high occupancy rates.

Razan Dozom, marketing manager, Middle East, Servcorp, says, "We notice business people are looking to run a flexible and lean organisation while they focus on their core business without having the hassles of an office to manage.

"In the current economic climate, short-term leasing is the perfect solution for companies that don't want to commit to long-term leases."

Servcorp's virtual office rates start from Dh450 per month while office rents range from Dh9,000 per month.

bpanicker@alnisrmedia.com