The office sector in Dubai is witnessing a remarkable resurgence, with Grade A office spaces operating at over 95% occupancy.
This trend marks a significant increase in pre-commitments, as Dubai emerges as a top destination for corporations seeking to expand in the region. Recent research by Emirates NBD highlights that demand is primarily driven by Indian, Chinese, and European firms, alongside existing corporations broadening their operations.
“Pre-committing space in under-construction projects has gained traction across various micro-markets, indicating long-term corporate interest in Dubai,”
the study notes. This shift, typically seen in mature global office markets, reflects Dubai's growing appeal despite a global downturn in office activity.
As businesses recover from the pandemic, the demand for office space has returned to pre-pandemic levels, with Dubai outperforming many other markets. The city's attractive Grade A offerings and a resurgence in economic and tourism activities, supported by proactive government policies, have solidified its status as a prime location for global companies.
In particular, the banking and financial services sector, especially hedge funds, is experiencing significant growth, with the Dubai International Financial Center (DIFC) being the preferred hub. The DIFC recorded a 34% year-on-year increase in new company registrations in 2023, pushing demand further into surrounding markets like the Abu Dhabi Global Market (ADGM).
To accommodate this rising demand, over 1.2 million square feet of Grade A office space is projected to be added in Dubai over the coming years, ensuring the city remains at the forefront of corporate expansion in the region.
News Source: Khaleej Times
