Dubai’s commercial real estate market recorded an impressive 9,038 commercial sales transactions, reflecting a 24 per cent year-on-year (YoY) increase in 2024, an industry report said.
The total transaction value last year surged to $24.5 billion (AED 90.1 billion), marking an 11 per cent YoY growth, the report by Commercial Real Estate Consultants (CRC), an affiliate of Betterhomes, said.
“As we close the chapter on another year in Dubai’s commercial property market, it is clear that we have reached extraordinary milestones that speak volumes about the resilience, innovation, and global appeal of this dynamic city,” said Ben Bargh, Managing Director, Commercial Real Estate Consultants (CRC).
“These figures aren’t just numbers; they represent the vision of investors, the hard work of entrepreneurs, and the trust placed in Dubai as a global hub for commerce and opportunity,” he said.
Office segment: A key contributor
The office segment emerged as a cornerstone of growth, with 2,972 office sales transactions valued at AED 6.5 billion, the highest on record and a 37 per cent YoY increase, the report said.
The segment accounted for 33 per cent of total commercial transactions, underpinned by the sustained demand for spaces in prime business districts such as Business Bay, Jumeirah Lakes Towers (JLT), and Dubai Silicon Oasis.
A key driver of this growth is the influx of businesses, with over 70,000 new companies joining the Dubai Chamber of Commerce in 2024, reflecting a three per cent YoY increase in company registrations, it said.
The report, however, said the market continues to face a supply crunch, particularly for Grade A offices, with average secondary market prices soaring to AED 1,417 per sqft, a 27 per cent YoY increase.
Medium-sized office spaces remain highly sought after, as businesses renew leases at higher costs to avoid the challenges of relocating, it said.
Retail and industrial demand surge
CRC said the retail segment also saw a record-breaking 1,364 transactions collectively valued at AED 3.2 billion, a significant 34 per cent YoY increase in 2024.
Off-plan retail properties dominated the market, contributing 65 per cent of total transaction value.
Demand for industrial spaces also grew, with warehouse properties averaging AED 11.9 million in 2024, a 20 per cent YoY increase, driven by the expansion of e-commerce and logistics operations, it said.
Future outlook and supply pipeline
The report said to address the supply-demand imbalance, over 1,400 office units are under construction, with delivery timelines stretching from 2025 to 2028.
Notable upcoming projects include the Immersive Tower in DIFC and Phase 2 of Uptown Dubai, highlighting the city’s commitment to a controlled, strategic expansion.
In Q4 2024, major developments were announced to position Expo City Dubai as a key business and lifestyle destination.
Abu Dhabi’s Aldar Properties partnered with Expo City Dubai on an AED 1.8 billion mixed-use project near Al Maktoum International Airport and Dubai Exhibition Centre (DEC).
Dubai Multi Commodities Centre (DMCC) and Real Estate Investment Trust (REIT) Development have announced the launch of the 17-storey Crypto Tower in JLT.
Looking ahead, CRC said it and the broader commercial real estate market anticipate even greater milestones in 2025, as Dubai continues to push boundaries and redefine global standards in commercial property.
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