In response to the strong demand for such facilities in the city, 44,000 square meters of new, premium office space in free zones will be added to Dubai’s commercial real estate market in 2024. This development follows research by CRC, a commercial real estate organization, highlighting the building or extension of office spaces at notable sites, including Swede One in Jumeirah Lakes Towers (JLT) and 6 Falak in Internet City. Global projections indicate a rise in remote work, but Dubai’s office space market is expanding, outpacing forecasts and demonstrating investor confidence.
Present-Day Market Environment
The gross leasable area increased by 92,000 square meters in 2023, increasing the total stock size to 9.2 million square meters. According to the CRC study, the increase in office sales and values shows that the market has performed better than anticipated. With further growth predicted in 2024 due to rising demand, a larger population, and an all-around more robust market, this encouraging trend represents ongoing investor confidence.
Office property prices in Dubai increased from AED 1,006 per square foot in 2022 to an average of AED 1,120 in 2023.
Dynamics Of The Market And Growth Drivers
According to the CRC study, the increase in office sales and values shows that the market has performed better than anticipated. With further growth predicted in 2024 due to rising demand, a larger population, and an all-around more robust market, this encouraging trend represents ongoing investor confidence.
Despite being somewhat behind the 2014 peak of AED 1,198 per square foot, this increasing trend indicates a favorable attitude in the market.
Dynamics Of The Market And Growth Drivers:
This is a significant increase compared to the AED 52.1 billion and 9,724 transactions reported in 2022. Dubai’s commercial real estate industry has shown to be resilient and appealing to investors, which adds to the city’s overall economic vigor.
In 2023, office space sales in Dubai brought in a total of AED 4.78 billion, or 1.3 billion.
Demand-Shifting Factors In Important Locations
The top office sales sites are Jumeirah Lakes Towers (JLT), Business Bay, Sheikh Zayed Road, Motor City, and Barsha Heights. This is consistent with JLT, Business Bay, and Sheikh Zayed Road being the primary business leasing locations. Tecom and Media City rank fourth and fifth in commercial leasing, respectively, demonstrating the regions’ ongoing attraction to companies.
Finally
The launch of new office spaces in 2024 is a testament to Dubai’s commercial real estate market defiance of expectations and highlights the city’s durability and investment appeal. The office space market in Dubai is a captivating story of persistent demand and trust in the city’s corporate scene, even as the city continues to change.
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