Dubai Market Bucks Remote Work Trends with Surge in Office Space Expansion

Dubai Market Bucks Remote Work Trends with Surge in Office Space Expansion

Dubai’s commercial real estate sector is set to defy remote work expectations as it prepares to welcome 44,000 square meters of new, premium office space in free zones across the city in 2024. This proactive response comes amidst surging demand for office accommodations, reflecting Dubai’s resilience and attractiveness as a business hub.

A report by commercial real estate company CRC highlights the upcoming construction projects, including the development of 6 Falak in Internet City and Sweid One in Jumeirah Lakes Towers (JLT), signaling a commitment to meeting the city’s evolving office space needs.

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In 2023 alone, the Dubai market witnessed the addition of 92,000 square meters of gross leasable area, bringing the total stock size to an impressive 9.2 million square meters. This expansion underscores Dubai’s position as a vibrant commercial center with sustained investor confidence.

Despite initial projections favoring remote or hybrid work arrangements post-pandemic, the Dubai market has experienced a remarkable 44% increase in buyer leads for office purchases, signaling a robust demand for physical office spaces. This trend is attributed to regulations governing visas per square foot of office space, driving companies to seek larger premises to accommodate their expanding workforce.

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The average price of office properties in Dubai saw an uptick in 2023, reaching AED 1,120 per square foot, reflecting growing investor interest and market resilience. Total office space sales in 2023 amounted to AED 4.78 billion, marking a significant increase from the previous year’s figures.

In terms of commercial real estate transactions, Dubai witnessed a notable surge, with 12,215 units sold for a total value of AED 91 billion in 2023, representing a substantial uptick from AED 52.1 billion and 9,724 transactions in 2022.

Read more : Sharjah Real Estate Soars: Dh3.1 Billion in Transactions

Key office sales locations in Dubai include Jumeirah Lakes Towers (JLT), Business Bay, and Sheikh Zayed Road, underscoring the city’s diverse and thriving business districts. Meanwhile, Tecom and Media City emerged as prominent destinations for commercial leasing, further diversifying Dubai’s commercial landscape.

As Dubai continues to position itself as a global business destination, the expansion of office space reflects the city’s commitment to fostering growth, innovation, and economic resilience. With rising demand, a growing population, and a thriving market, Dubai remains a premier destination for businesses seeking to establish a presence in the Middle East.

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