Dubai-based TECOM Group announced on Thursday that it has commenced the development of six Grade-A office buildings within Phase 2 of Dubai Design District (d3) at an investment of 825 million UAE dirhams ($225 million).

The development, which will span a gross floor area of 629,000 square feet, will be built in line with LEED certification standards and is set for completion by the first half of 2028, TECOM Group said in a press statement.

In addition to its sustainable buildings, the project will also include sports facilities, community spaces, parking, fine dining options, and an extended promenade, the statement noted.

Real estate consultancy Cushman & Wakefield had stated last week in a report that supply shortage in Dubai’s office market is likely to persist until 2027-2028. The report noted that city-wide office occupancy has hit a record 90 percent in the second quarter, while the CBD districts, including Downtown Dubai, DIFC, and Sheikh Zayed Road, are above 95 percent occupancy, intensifying rent pressures and supply shortage.

Read more: Dubai’s TECOM Group to invest $93mln in Grade A office spaces at new Innovation Hub Phase 3

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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