Dubai’s commercial real estate sector has proven its resilience and continued appeal, maintaining strong momentum in 2024. The city’s strategic positioning as a global business hub, alongside robust infrastructure developments and sustained demand, has been a key driver of growth in both the office and industrial markets.
Office Market
In 2024, Dubai’s office market experienced a remarkable year, with demand consistently outpacing supply, especially in premium Grade A office spaces. Key business districts like DIFC, Business Bay, and Downtown Dubai recorded near-full occupancy, with DIFC leading the way at 96% occupancy by year-end. The demand for office spaces in these areas highlights the city’s enduring appeal to global enterprises seeking prestigious addresses.
Emerging business hubs such as Dubai South and Expo City also gained traction during the year. These locations are attracting attention due to their affordability, better traffic management, and the availability of larger office spaces. This shift underscores the growing diversification of Dubai’s business districts, catering to a wide range of business needs and budgets.
Rental Growth and Leasing Trends
The city recorded a 9% year-on-year increase in rental transaction volumes, a figure that speaks to the overall strength of Dubai’s commercial real estate market. Moreover, the rise in new company registrations, with over 51,000 businesses joining the Dubai Chamber of Commerce, further illustrates the market’s vitality. The financial services and technology & media sectors were the most active in leasing transactions, together accounting for 52% of all deals.
There has been a notable shift in tenant preferences, with many businesses prioritizing environmentally sustainable, green office spaces that meet ESG (Environmental, Social, and Governance) standards. This trend aligns with global demands for sustainable practices and showcases Dubai’s commitment to fostering eco-friendly business environments.
Industrial and Logistics Sector
Dubai’s industrial and logistics market saw a record-breaking year in 2024, driven primarily by the continued expansion of e-commerce, population growth, and booming activity in sectors such as FMCG (fast-moving consumer goods) and oil & gas. The demand for industrial space reached new heights, with vacancy rates dropping to historically low levels and rental prices climbing across key micro-markets.
Grade A rents in areas like DIP, Dubai Industrial City, and Jebel Ali Industrial saw year-on-year increases of 37.5%, 28.6%, and 22.2%, respectively. Dubai South, DAFZA, and DuBiotech also saw substantial growth, with rents surpassing AED 120 per square foot annually. This growth reflects the surging demand for temperature-controlled facilities and high-bay warehouses, essential for sectors like e-commerce and logistics.
The Road Ahead
Dubai’s commercial real estate market is positioned for another strong year in 2025. With sustained demand across both office and industrial sectors, continued infrastructure improvements, and a growing focus on sustainability, Dubai remains a top destination for businesses looking to thrive in a dynamic and competitive environment. As the city continues to attract global enterprises and investors, the commercial property market is sure to remain a key driver of Dubai’s economic growth and development.
At One Investments, we understands the importance of seizing opportunities in a growing economy. We focus on identifying investment avenues that cater to the needs of investors, offering a blend of world-class luxury with modern convenience. Whether clients are looking to reconnect with their homeland or secure high-value real estate, the properties we offer provides unmatched investment potential.
As Dubai undergoes its economic transformation, now is the time to be part of this exciting journey. Give us a call today and make your investment a lasting legacy for your future generation.
