In 2023, Dubai’s commercial real estate sector exhibited remarkable dynamism, surpassing initial projections and demonstrating robust activity, particularly in the office segment.
According to the latest data from the Dubai Land Department, the transaction volume for office spaces witnessed a substantial 34% increase compared to the preceding year, accompanied by an impressive 48% surge in the total value of these transactions.
Despite widespread expectations of a slowdown attributed to the widespread adoption of remote and hybrid work policies by businesses, Dubai experienced a noteworthy 44% upswing in prospective buyers expressing interest in office acquisitions. While overall sales remained stable, heightened levels of registrations, leads, and engagement underscore the sector’s sustained positive momentum.
Behnam Bargh, Managing Director at CRC, attributes this surge in prospective office buyers to the enduring appeal of Dubai’s commercial properties and the unwavering confidence that investors continue to place in this market.
The surge in demand can be attributed to the imperative for larger office spaces to comply with visa allowance regulations tied to office dimensions, driven by the expansion of companies and their increased hiring activities.
Prominent leasing areas encompass Jumeirah Lake Towers (JLT), Business Bay, Sheikh Zayed Road, Barsha Heights (Tecom), and Dubai Media City. The heightened demand has catalyzed new supply, with specific free zones expanding and notable projects such as 6 Falak, Internet City, and Sweid One launching in JLT.
In 2023, an additional 92,000 square meters of leasable space became available, contributing to the overall stock reaching 9.2 million square meters, with a further 44,000 square meters anticipated this year.
Dubai’s office sector exhibited robust performance in 2023, defying recession risks and recording increased deal volumes and values. This resilience underscores the market’s enduring attractiveness to investors. With ongoing population growth and a rebounding economic environment, further expansion is anticipated in 2024, driven by escalating occupancy requirements.
Publish 1 Feb 2024
Source: https://www.arabianbusiness.com/industries/real-estate/dubai-real-estate-demand-for-office-spaces-surge-34
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