According to an industry report, Dubai’s commercial real estate market saw 9,038 sales transactions in 2024, representing a 24% YoY growth.
According to Betterhomes affiliate Commercial Real Estate Consultants (CRC) research, the total transaction value increased 11% YoY to $24.5 billion (AED 90.1 billion) last year.
“As we close the chapter on another year in Dubai’s commercial property market, it is clear that we have reached extraordinary milestones that speak volumes about the resilience, innovation, and global appeal of this dynamic city,” said Ben Bargh, Managing Director, Commercial Real Estate Consultants (CRC).
“These figures aren’t just numbers; they represent the vision of investors, the hard work of entrepreneurs, and the trust placed in Dubai as a global hub for commerce and opportunity,” he said.
Office segment: A key contributor
According to the research, with 2,972 office sales transactions valued at AED 6.5 billion, the biggest on record, and a 37% YoY rise, the office segment emerged as a key driver of growth.
Supported by the ongoing demand for space in prestigious corporate districts including corporate Bay, Jumeirah Lakes Towers (JLT), and Dubai Silicon Oasis, the segment accounted for 33% of all commercial sales.
A key driver of this growth is the influx of businesses, with over 70,000 new companies joining the Dubai Chamber of Commerce in 2024, reflecting a 3% YoY increase in company registrations.
The report, however, said the market continues to face a supply crunch, particularly for Grade A offices, with average secondary market prices soaring to AED 1,417 per sqft, a 27% YoY increase.
According to the report, medium-sized office spaces are still in great demand as companies extend their leases at higher rates to avoid the difficulties associated with moving.
Retail and industrial demand surge
CRC said the retail segment also saw a record-breaking 1,364 transactions collectively valued at AED 3.2 billion, a 34% YoY increase in 2024.
Off-plan retail properties dominated the market, contributing 65% of total transaction value.
Demand for industrial spaces also grew, with warehouse properties averaging AED 11.9 million in 2024, a 20% YoY increase, driven by the expansion of e-commerce and logistics operations, it said.
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Future outlook and supply pipeline
The report said that over 1,400 office units are under construction to address the supply-demand imbalance, and delivery timelines stretch from 2025 to 2028.
Phase 2 of Uptown Dubai and the Immersive Tower in DIFC are two noteworthy planned projects demonstrating the city’s dedication to a controlled, strategic expansion.
In Q4 2024, significant developments were announced to position Expo City Dubai as a key business and lifestyle destination.
Abu Dhabi’s Aldar Properties partnered with Expo City Dubai on an AED 1.8 billion mixed-use project near Al Maktoum International Airport and Dubai Exhibition Centre (DEC).
Real Estate Investment Trust (REIT) Development and Dubai Multi Commodities Centre (DMCC) have announced the opening of the 17-story Crypto Tower in JLT. As Dubai pushes the envelope and redefines international norms for commercial real estate, CRC and the larger commercial real estate sector expect even more noteworthy breakthroughs in 2025.
