Dubai’s real estate market has long been synonymous with luxury residential properties, but 2024 proved that commercial real estate is experiencing a surge of its own. With robust demand for premium office spaces and record growth in the industrial and logistics sectors, businesses and investors are increasingly looking towards commercial opportunities.
A Market in High Demand
Dubai’s office market remained exceptionally strong throughout 2024, with demand for Grade A office spaces consistently outpacing supply. Key business districts such as DIFC, Business Bay, and Downtown reported near-full occupancy rates, with DIFC closing the year at 96%. Emerging areas like Dubai South and Expo City are also gaining traction due to their competitive pricing and improved accessibility.
This high demand has led to a 9% year-on-year increase in rental transaction volumes, complemented by a 4% rise in new company registrations. More than 51,000 businesses joined the Dubai Chamber of Commerce in 2024 alone, further reinforcing the city’s position as a global business hub.
The financial services, technology, and media sectors have dominated leasing activity, accounting for over half of all transactions. This trend highlights a significant opportunity for tailored commercial real estate services, as businesses seek premium office spaces that align with their brand and operational needs.
The Industrial Boom
Beyond office space, Dubai’s industrial and logistics sector has experienced unprecedented growth, fuelled by e-commerce expansion, population increases, and the strength of the FMCG and oil and gas industries. With the emirate positioned as a central hub for global trade, demand for logistics and warehousing facilities is only set to rise.
Savills projects that in 2025, approximately 1 million sq. ft. of Grade A office space and 920,000 sq. ft. of industrial facilities will enter the market. While this will help ease supply constraints in the short term, demand is expected to keep rental values on an upward trajectory, particularly in prime locations.
Opportunities in Commercial Expansion
As rents rise and prime commercial spaces become increasingly sought-after, the market is evolving to require specialised expertise in leasing, industrial transactions, and commercial investments. With businesses looking for strategic locations and long-term solutions, there is a clear demand for knowledgeable professionals who can navigate these shifts and provide tailored solutions.
Recruiting experienced commercial real estate specialists is key to staying ahead in this competitive landscape. The right talent will be instrumental in helping businesses secure prime locations, negotiate favourable terms, and optimise their commercial investments. With a strong team in place, market players can establish a firm foothold in Dubai’s thriving commercial sector, ensuring continued growth and success.
Dubai is growing, businesses are expanding, and the demand for premium office and industrial spaces isn’t slowing down. The next step? Building the right team to capitalise on these opportunities and shape the future of commercial real estate in the city.
