In a surprising move contradicting remote work expectations, Dubai is set to witness the construction of 44,000 square meters of high-quality office space in free zones during 2024, responding to the city’s surging demand.

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Commercial real estate company CRC’s report reveals plans for new constructions or expansions at 6 Falak in Internet City and Sweid One in Jumeirah Lakes Towers (JLT). The recent addition of 92,000 square meters of gross leasable area in 2023 has brought the total stock size to 9.2 million square meters.

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Despite initial projections related to post-pandemic remote work trends, the Dubai office market experienced a remarkable 44% increase in buyer leads for office purchases. This unexpected surge indicates persistent investor confidence, leading to further growth in 2024, driven by rising demand, population growth, and a healthier market.

In 2023, the average price of office properties in Dubai was AED 1,120 per square foot, reflecting an increase from AED 1,006 in 2022. Although slightly below the previous high of AED 1,198 per square foot in 2014, the market’s resilience is evident. The total value of office space sold in Dubai in 2023 amounted to AED 4.78 billion (AED 1.3 billion).

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The city’s commercial real estate market witnessed a substantial increase, selling 12,215 units for a total of AED 91 billion in 2023, compared to AED 52.1 billion and 9,724 transactions in 2022.

CRC points out that regulations concerning visas per square foot of office space play a crucial role in the rising demand. As companies expand and hire more employees, the need for larger premises grows to accommodate visa allowances in proportion to office size.

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The top locations for office sales included Jumeirah Lakes Towers, Business Bay, Sheikh Zayed Road, Motor City, and Barsha Heights. Tecom and Media City secured the fourth and fifth positions, respectively, in both office sales and commercial leasing.

This unexpected upturn in the Dubai office space market challenges conventional expectations, emphasizing the city’s resilience and adaptability to evolving work dynamics.