Dubai’s commercial real estate sector demonstrated impressive growth in 2024, with significant expansion across both office and industrial markets, as highlighted in Savills’ latest market reports.
The city’s position as a global business hub, bolstered by ongoing infrastructure improvements and high demand, continues to drive rental growth and investment activity.
The office market remained strong in 2024, with demand for premium Grade A spaces outpacing supply. Key districts such as DIFC, Business Bay, and Downtown saw near-full occupancy, with DIFC reaching 96% by year-end. Emerging areas like Dubai South and Expo City also gained traction due to their affordability, reduced congestion, and available space.
Rental transaction volumes increased by 9% year-on-year, reflecting a 4% rise in new company registrations, with over 51,000 businesses joining the Dubai Chamber of Commerce. The financial services and technology sectors led leasing activity, accounting for 52% of transactions. ESG-compliant, green office spaces are increasingly in demand, with tenants opting for longer leases with rental escalations to secure prime locations.
Dubai’s industrial sector also saw unprecedented growth, driven by e-commerce, population expansion, and activity in the FMCG and oil & gas industries. Vacancy rates hit historically low levels, with Grade A rents surging by up to 37.5% in key areas like DIP and Jebel Ali Industrial. Demand for temperature-controlled facilities and high-bay warehouses drove significant investment activity from companies such as Aldar Properties and Brookfield Asset Management.
Looking ahead, both office and industrial markets are poised for further growth in 2025, with new developments set to ease supply constraints, although high demand is likely to sustain upward pressure on rents.
News Source: Savills
