A continued lack of demand and drive from occupiers to lower costs has seen Dubai office rental rates fall on average by 8.4% in the year to the end of September, according to new research by Knight Frank.

The firm said that Grade A rents in Dubai fell by 5.9% in the year to Q3, while citywide office rents fell by 9.2% in the 12 months to September to AED 110 sq ft (£23) per year.

Knight Frank said the figures come as business confidence in Dubai has eased in the first two quarters of 2019, following the slowdown registered in Dubai’s GDP growth from 3.1% last year to 1.9% now. It added that the vast majority of activity in the Dubai office occupier market continues to stem from firms consolidating, with activity from new incoming occupiers remaining very limited in the first three quarters of 2019.

Matthew Dadd, partner at Knight Frank Middle East, said: “With the premium between entry level prime office space and average Grade A buildings closing, firms are much more open to considering relocating in Dubai to Prime office buildings. Particularly as prime office space offers dual licencing, something which not all Grade A office space offers.”