Analysis of the current situation in Dubai's commercial property market shows that demand for Grade A office space is significantly outstripping available supply.
This is due to the active opening of new regional headquarters by international companies in the free zones.
In response to the high demand, landlords are looking to upgrade outdated facilities to meet modern requirements and increase profitability through rental growth. According to local analysts, even with the launch of new office projects, the supply shortage will persist until 2026. This is due to the fact that the construction of commercial properties takes a long time - at least 2-3 years. In addition, most new Class A office space is pre-let during the construction phase.
It is therefore possible that the market will be faced with a limited amount of available space in the coming years, which will continue to fuel demand. Experts predict that the occupancy rate of Class A offices will reach 95% by the end of 2024, and could rise to 100% by 2025.
Unlike other megacities, where demand for commercial property remains at an average level, Dubai is seeing a steady increase in interest from tenants and investors.
This is due to its stable economy, developed infrastructure and favourable legislation. At the same time, the market is also seeing increased interest in Class B and C office space. This indicates the diversification of demand and the wide range of business opportunities across different segments.
As a result, Dubai's commercial property market remains attractive to international companies and investors. Strong demand for Grade A offices is supporting pricing dynamics and strengthening the competitiveness of the market. And the upgrading of Grade B and C properties is creating additional business opportunities, cementing Dubai's status as one of the most important global business centres.