Demand for commercial real estate in Dubai is witnessing a surge
Dubai’s commercial realty market is scoring high, with the office and industrial sectors emerging as the key drivers of growth. The office market in Dubai has hit its stride, with demand for premium Grade A spaces outpacing supply in key business districts. The Dubai International Financial Centre reported a 96% occupancy rate by the end of 2024. Other prime locations (like Downtown Dubai and Business Bay) are also experiencing similar trends.
Newer domains like AI, fintech, and sustainable technologies are attracting several international companies and startups looking for modern, well-equipped office spaces. In 2024, Dubai recorded 2,972 office sales transactions (a 3% YoY increase), raking in AED 6.5 billion (a 37% YoY growth). The average selling price for office properties peaked at AED 3.8 million, an 85% leap from the previous year.
While the glitzy office towers grab headlines, Dubai’s industrial sector is quietly undergoing a renaissance of its own. The expansion of e-commerce, coupled with population growth and robust activity in sectors like FMCG and oil & gas, has fueled unprecedented demand for industrial and logistics spaces.
Grade A rents in key industrial areas have seen significant upticks: a 37.5% increase in Dubai Investments Park (DIP), 28.6% in Dubai Industrial City and Jebel Ali Industrial, and 22.2% in Dubai South. The average warehouse sale price has reached AED 11.9 million (a 20% YoY growth). This surge isn’t just driven by local demand; global players are also snapping up Dubai’s industrial assets.
Dubai’s commercial realty boom is the result of several significant factors like —
- Strategic Location
- World-Class Infrastructure
- Business-Friendly Policies:
- Economic Resilience
The government’s AED 25 billion foreign direct investment program and investor-friendly visa policies have rolled out the red carpet for global talent and capital.
As we peer into the future, the outlook for Dubai’s commercial real estate market remains bullish. Experts project continued growth, with approximately 1 million square feet of Grade A office space and 920,000 square feet of Grade A industrial facilities expected to enter the market in 2025. High demand is expected to maintain upward pressure on rents, particularly in prime locations. The Dubai 2040 Urban Master Plan, with its focus on sustainable growth and infrastructure development, will redefine what’s possible in a modern, dynamic urban landscape.
