The Rising Demand for Premium Office Space & Q2 2024 Commercial Overview

As witnessed in CRC's latest Commercial Market Report of Q2 2024, the average selling price for secondary office spaces in Dubai has reached an unprecedented AED 1,364 per sq ft.

This milestone not only marks a full recovery from the pandemic downturn but also represents a remarkable 22% year-on-year increase.

This surge underscores the robust demand and resilient growth within Dubai’s real estate market, particularly for high-quality, Grade A office spaces in key business districts such as Business Bay and Jumeirah Lakes Towers.

The Rise of Premium Office Spaces

Businesses in Dubai are increasingly willing to invest in premium office spaces that offer modern amenities, strategic locations and excellent connectivity.

This trend is driving up the prices of these coveted properties, despite the ongoing development projects aimed at increasing supply.

The persistent supply crunch for top-tier office spaces in prime locations and LEED certified buildings has intensified competition among businesses, contributing to the surge in selling prices. High occupancy rates and the scarcity of new supply have been significant factors in this price escalation.

In 2024, we at CRC have witnessed LEED-certified buildings have become highly sought after in Dubai for several compelling reasons. As the city continues to position itself as a global leader in sustainability and innovation, businesses and investors are increasingly prioritising environmentally responsible and energy-efficient properties.

LEED (Leadership in Energy and Environmental Design) certification provides a recognised standard for green building practices, ensuring that buildings meet rigorous sustainability criteria.

CRC Property Insights: A Reflective Quarter

At CRC Property, we’ve observed a notable 14% increase in overall buyer leads during Q2 2024 compared to the same period last year.

Our data reveals a significant divergence in leads for different property types:

• Office Leads: There was a 21% increase in office leads, indicating growing interest in office spaces offered by CRC. This suggests potential business expansions, relocations and new market entrants, reflecting the vibrant economic activity in Dubai.
• Warehouse Leads: Leads for warehouse spaces surged by 51%, driven by the booming e-commerce and retail distribution sectors. This substantial increase underscores the escalating demand for logistics and storage facilities, essential for supporting Dubai’s position as a global trade hub.

The Bigger Picture

Dubai’s real estate market, particularly the office space segment, is experiencing robust growth driven by strategic investments and a resilient economy. The willingness of businesses to pay a premium for high-quality office spaces in prime locations highlights the city’s appeal as a global business destination.

As supply continues to lag behind demand, prices are expected to remain elevated, reinforcing the competitive nature of the market.

At CRC Property, we are committed to guiding our clients through this dynamic landscape, offering expert insights and tailored solutions to navigate the evolving market conditions.

The sustained increase in buyer leads and the growing interest in both office and warehouse spaces are clear indicators of Dubai’s enduring attractiveness as a hub for business and trade.