PHOTO
Dubai is to see new quality office space developed in free zones in 2024 in response to surging demand, with 44,000 sqm scheduled for this year.
There will be new build or expanded office spaces at 6 Falak in Internet City, and Sweid One in Jumeirah Lakes Towers (JLT), a report by commercial real estate company, CRC, said.
This follows 92,000 sqm of gross leasable area being added in 2023, bringing the total stock to 9.2 million sqm.
The market defied expectations with increased office transactions and values, reflects enduring investor confidence, the report said, with further growth expected in 2024 driven by the rising demand and a growing population and a healthier market.
The value of office space sold in Dubai in 2023 reached AED 4.78 billion (AED1.3 billion) with the average price for the city’s office properties reaching AED 1,120 per sq.ft., close to but still slightly short of the previous high of AED 1,198 per sq.ft. in 2014 but up from AED 1,006 in 2022.
The total value of commercial property sold in the city in 2023 was AED 91 billion, with 12,215 units sold, up from AED 52.1 billion and 9,724 transactions in 2022.
CRC said: “In contrast to post-pandemic projections and the prevalent tendency of businesses embracing remote or hybrid work arrangements, there was a notable 44% increase in buyer leads for office purchases.”
CRC said the growing demand for Dubai office space is partly fuelled by laws related to visas per square foot of office space.
“As companies grow and recruit more employees, they also require larger premises to cover the visa allowances in proportion to the size of their offices,” CRC’s commercial report for 2023 said.
The top areas for office sales were JLT, Business Bay, Sheikh Zayed Road, Motor City and Barsha Heights. Commercial leasing saw the same top three, with Tecom and Media City coming in fourth and fifth.
(Writing by Imogen Lillywhite; editing by Brinda Darasha)
