Office rental rates in Dubai surged by 22.4 percent in the first quarter of 2024, driven by increased demand and a limited supply of commercial spaces, according to a report from global property consultancy Knight Frank. The city’s Grade A office spaces have occupancy rates exceeding 90 percent, fueling competition for prime locations in top submarkets.
Knight Frank’s report revealed in a Khaleej Times report that the Dubai International Financial Centre (DIFC) remains the priciest area for office rentals, with rates reaching Dh355 per square foot. The Trade Centre District follows at Dh350 per square foot, showcasing an 81 percent jump over the last year. Downtown Dubai, although more affordable than DIFC, also witnessed significant growth.
In response to this demand-supply gap, developers plan to introduce 4.2 million square feet of new office space by 2028. Despite concerns of remote working trends post-pandemic, businesses are prioritizing high-quality office spaces to attract talent, highlighting the growing importance of premium, sustainable properties in the market.
Transaction volumes in the first half of 2024 saw a 24 percent year-on-year increase, indicating a thriving market. Industry experts note that the limited supply of office space will continue to pressure rental prices in the near future.
