Dubai’s business landscape continues to thrive in 2024, with strong growth in the office and industrial real estate sectors. The city’s appeal as a global business hub, combined with world-class infrastructure and business-friendly policies, has fueled demand for premium office spaces and industrial facilities.
Strong Demand for Office Spaces in Dubai
Dubai’s office market remains highly competitive, with demand surpassing supply for high-quality Grade A office spaces. Major business districts like DIFC, Business Bay, and Downtown have reported near-full occupancy, with DIFC reaching 96% by the end of the year.
Emerging business areas such as Dubai South and Expo City are gaining popularity due to their affordability, reduced traffic congestion, and ample office space availability. The city recorded a 9% increase in rental transactions, supported by a 4% rise in new company registrations, with over 51,000 businesses joining the Dubai Chamber of Commerce.
Financial services, technology, and media companies are leading the way in leasing office spaces, accounting for 52% of transactions.
According to Toby Hall, Head of Commercial Agency at Savills Middle East, “Dubai’s office market reflects the city’s appeal to global enterprises, underpinned by its strategic location, world-class infrastructure, and business-friendly policies.”
Industrial and Logistics Sector on the Rise
Dubai’s industrial and logistics sector is experiencing remarkable growth in 2024, driven by the expansion of e-commerce, population growth, and strong demand from the FMCG and oil & gas sectors. As a central hub for international trade, Dubai continues to attract global investors looking to establish logistics and industrial operations.
Future Growth in 2025
The outlook for Dubai’s commercial real estate market remains positive for 2025. The city is set to welcome approximately 1 million sq. ft. of Grade A office space and 920,000 sq. ft. of new industrial facilities, which will help ease supply shortages in the short term.
Upcoming developments such as Wasl Tower, DIFC Square, and new industrial parks will provide businesses with more options to expand their operations. However, due to strong demand, rental prices are expected to continue rising, especially in prime locations.
Key Takeaways
- Dubai’s office and industrial real estate markets continue to grow, attracting global businesses.
- High demand for Grade A office spaces in DIFC, Business Bay, and Downtown.
- Emerging business hubs like Dubai South and Expo City are gaining traction.
- 9% rise in rental transactions and 4% increase in new company registrations.
- Industrial and logistics demand surging due to e-commerce and trade expansion.
- Over 1.9 million sq. ft. of new office and industrial spaces expected in 2025.
- Rental prices likely to rise due to high demand, favoring long-term leases.
Why Invest in Dubai’s Commercial Real Estate?
Dubai’s strategic location, tax-friendly environment, and advanced infrastructure make it an ideal destination for businesses and investors. With continued economic growth and strong government support, the city remains a top choice for commercial real estate investment.
If you are looking to set up your business in Dubai, now is the time to secure a prime location before rental prices rise further!