Dubai’s commercial office market is experiencing significant growth, with Q3 2024 seeing an unprecedented surge in rental prices and occupancy levels across the city’s top business districts, according to the latest report from Savills. The global real estate advisory firm attributes this increase to a rising number of new business registrations and expansions, particularly from firms in finance and technology, further cementing Dubai’s status as a leading global business destination.
Savills’ Q3 2024 Dubai Office Market report reveals that over 24,000 new businesses registered in the first half of 2024, reflecting a 5% year-on-year increase and highlighting the positive impact of the Dubai Economic Agenda (D33) in attracting foreign and domestic investment. Key business hubs like Dubai International Financial Centre (DIFC), Downtown, and Business Bay now report occupancy rates between 95% and 97%, underscoring robust demand for premium office spaces.
Average rental rates for Grade A office spaces rose by 25% year-on-year, with Business Bay and Downtown seeing rent increases of 44% and 36%, respectively. DIFC’s top-tier properties reported rent hikes of up to 25%, as new developments such as DIFC Square and Immersive Tower are expected to add over 10 million square feet of high-quality office space by 2028.
“Dubai’s office market growth underscores its global appeal, driven by favorable tax policies, ease of setup, and a strategic location,” said Toby Hall, Head of Commercial Agency at Savills Middle East. “We’re witnessing businesses establishing and expanding their presence here to attract top talent and drive growth.”
Paula Walshe, Director of Transactional Services at Savills Middle East, noted the impact of hybrid working models on office preferences, with flexible and open-plan workspaces gaining popularity. These setups, such as those offered by Executive Centre and Cloud Spaces, are particularly appealing for startups and international firms seeking agility and rapid operational setup.
The demand for office space has expanded beyond traditional high-end areas. More affordable locations like Dubai Science Park and Dubai Investments Park saw rental increases of 37% year-on-year, while Expo City is emerging as an appealing alternative, offering premium facilities at lower prices than central business districts.
Savills anticipates continued demand as more companies leverage Dubai’s strategic location, favorable business climate, and state-of-the-art infrastructure to grow their operations.
