Dubai’s commercial real estate market saw dynamic activity in 2023 that outpaced projections, with particularly strong demand witnessed in the office sector.
According to the latest data from the Dubai Land Department, the volume of office space transactions increased 34 percent compared to 2022, while the total value of these deals rose an impressive 48 percent.
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Contrary to expectations of a slowdown as businesses widely adopt remote and hybrid work policies, Dubai experienced a notable 44 percent jump in buyer leads for office purchases. While total sales were steady, increased registrations of interest, leads, and engagement indicate the sector retains positive momentum.
Behnam Bargh, Managing Director at CRC, believes that the surge in prospective office buyers “underscores the continued appeal of Dubai’s commercial properties and reflects the enduring confidence investors place in this market.”
Fueling demand is the need for larger premises to meet visa allowance rules linked to office space size as companies grow and hire more employees.
Top leasing areas include Jumeirah Lake Towers (JLT), Business Bay, Sheikh Zayed Road, Barsha Heights (Tecom) and Dubai Media City. The brisk demand has spurred new supply, with certain freezones expanding and projects like 6 Falak, Internet City and Sweid One launching in JLT.
Some 92,000 square meters of additional leasable area came online in 2023, pushing total stock to 9.2 million square meters, with 44,000 more expected this year.
The strong performance of Dubai’s office sector in 2023 has defied recession risks, recording higher deal volumes and values. This resilience reflects the market’s appeal among investors. With ongoing population growth and recovering economic conditions, further expansion is anticipated in 2024 on the back of rising occupancy requirements.
