Dubai’s commercial property sector showed stable transaction volumes in the second quarter of 2024, according to a report by CRC Commercial Real Estate.
Office transactions in the emirate increased 1 percent year-on-year to 764 deals worth AED 1.36 billion in Q2, according to recent data.
This represented a growth of 17 percent in sales value pointing to sustained demand for office spaces.
Dubai’s office market remains resilient as pre-lease trend emerges
The marginal dip in overall commercial transactions indicates the market’s stability supported by ongoing investments and initiatives to boost the sector.
One notable new trend was the rise of pre-leasing, where tenants secure offices before they are available.
The pre-lease trend underscores limited availability of top-grade offices putting pressure on tenants to act swiftly.
Business Bay accounted for 43 percent of deals reflecting its popularity. Other prime areas included Jumeirah Lakes Towers with 32 percent and Dubai Silicon Oasis with 5 percent.
Demand is strongest for Grade A buildings with sustainability credentials to enhance corporate image and meet regulations, the report said, adding that the average secondary office price reached a record AED1,364 per square foot in Q2, up 22 percent year-on-year.
Persistent undersupply against strong demand has pushed up competition and prices while keeping occupancy high despite new developments.
Follow us on
