Dubai’s office space inventory will expand in 415000 square metes at the end of 2026, and most of the new developments fall into the degree category A, according to Cavendish Maxwell’s investigation.
The property consultant informs that 185,000 square meters will enter the market this year, followed by 230,000 square meters in 2026.
This expansion will increase the total Dubai office space inventory to 9.7 million square meters of the current 6.26 million.
Dubai office offers shoot
The investigation occurs when the Dubai office market registered 3,150 sales valued at AED6.8 billion in 2024, which represents a 36 percent increase in values and an increase of 7.1 percent in transactions. Business Bay dominated office sales, which represents 46 percent of all transactions.
Vidhi Shah, partner and head of commercial assessment, Cavendish Maxwell, said: “The Dubai office market continues to function strong multinational occupants and a growing base of start-up and SMEs.
The 2024 figures mark four consecutive years of growth from the pandemic, with sales values that increase five times from Aed1 billion in 2020 to Aed6.8 billion last year.
List offices constituted 92 percent of transactions, although sales outside the plan increased compared to 2023.
The market saw 2,900 office sales lists and 250 transactions outside the plan in 2024, which represents year -on -year increases or 5 percent and 37 percent respectively.
Rent prices increase sharply
Both sales and rental prices increased by almost 25 percent last year. Sales prices reached approximately AED1.550 per square foot, while rental rates rose to approximately AED145 per square foot.
Cavendish Maxwell attributes the increase in rental prices to high levels of occupation, which create market conditions that favor owners.
Business Bay led office sales with 1,343 transactions, followed by Jumeirah Lakes Towers (920), Dubai Silicon Oasis (200), Barsha Heights (148) and Motor City (68).
For sales outside the plan, Jumeirah Village Circle headed the list with 91 transactions, followed by Dubai Maritime City (65), Culture Village (47), Dubai Silicon Oasis (20) and Jumeirah Lakes Towers (15).
Rent increases vary in all locations, with grade premises to which the highest year -on -year increases experience.
The Dubai center saw rents increasing by almost 42 percent, while DIFC rates increased by more than 38 percent. Barsha Heights recorded the highest increase for non -grade spaces to 43.5 percent.
The growth of corporate demand that drives
The commercial services sector promoted the demand for a new office space, representing 45 percent of the requirements.
Finance and banking followed 22 percent, with technology and innovation companies (6 percent), creative, media and design companies (4 percent) and real estate and real estate development companies (3 percent) that comprise smaller demand segments.
“The market registered significant growth in both sales and rental values during the past year. Looking towards the future, as Dubai further improves its infrastructure, expands the offers of the free zone and launches additional commercial friends. However. However. Howhes. Or New Supply due to delivery over the next 18-24 months, it will be a follow-up of how this impacts the levels of vacancies of absorption and the absorption rates in general “, concluding the Shah”.
