Prime Highlights

• The Dubai commercial property market recorded strong growth in 2024, with rising transaction volume and investor interest. Office space led the charge, with a surge in new business formations and demand for premium property.

Key Facts

• Dubai saw over 9,000 commercial property transactions in 2024, a growth of 24% year-on-year.
• Office sales amounted to nearly 3,000 units, valued at over AED 6.5 billion—a record high.
• Industrial and retail activities also recorded robust expansion on the back of e-commerce and tourism recovery.

Key Background

The Dubai office property market in 2024 was robust, fueled by prudent economic fundamentals, investor-friendly regulations, and a developing business landscape. The worth of transactions posted to around AED 90 billion, a robust 24% year-on-year growth. The office market led the way, spearheaded by more than 70,000 new firm registrations during the year.

Commercial building spaces like JLT, Business Bay, and Silicon Oasis recorded rising demand for Grade A office towers. Average prices were as high as 27% above the rates at these locations and as high as AED 1,417 per sq ft in the secondary market. Largely as a result of the lack of high-grade space, most companies renewed their contracts at higher premiums instead of finding alternative locations to move to.

The retail market was also strong with 1,364 transactions worth more than AED 3.2 billion, an increase of 34% from last year. A lot of this activity was in the form of off-plan retail units because investor demand saw an increase driven by the positive outlook towards long-term commercial development.

Industrial property, especially warehouses, also saw its value increase as the demand for the e-commerce and logistics sectors improved. The value of warehouses increased by an average of 20%, with activity being mainly around main infrastructure centers.

To address the rising demand, over 1,400 new offices are to be delivered between 2025 and 2028. Some of the prominent future developments are new skyscrapers at Uptown Dubai and DIFC, and mega mixed-use commercial mega-complexes being built around Expo City and Al Maktoum International Airport.

The economic diversification program of the city, which includes the Dubai Economic Agenda (D33), will look to double the GDP of Dubai within a decade. Coupled with tax breaks, improved infrastructure, and enormous rental returns of 6% to 8%, Dubai remains a highly desirable destination for foreign commercial property investment.