DUBAI’S ECONOMIC BOOM FUELS SOARING DEMAND FOR OFFICE SPACE, OUTPACING SUPPLY

Dubai’s strong economic growth and a sharp increase in new business registrations are driving unprecedented demand for office space, particularly in prime areas like Downtown Dubai and the Dubai International Financial Centre (DIFC). This surge in demand has significantly outpaced supply, pushing office rental prices to record highs and forcing companies to explore emerging business districts such as Expo City, Dubai Production City, and Mohammed Bin Rashid (MBR) City. Limited availability in central locations is accelerating this shift, prompting a broader redistribution of commercial activity. In response, developers are repurposing residential and retail spaces into offices, while many businesses are pre-leasing spaces still under construction to secure their foothold in the market. Despite the addition of new office inventory, supply remains tight, with Grade A spaces nearing full occupancy. This imbalance has contributed to a 22% year-on-year increase in office rents in 2024, with further growth anticipated as demand remains strong.