Sales of commercial real estate (offices and shops) in Dubai achieved a significant jump during the first quarter of 2024, growing by 30.8% compared to the same period in 2023, which reflects the continued strength of demand for commercial space and an indication of the expansion of companies and businesses in the emirate.
According to Dubai Land Department data, commercial real estate sales in Dubai jumped to 1.91 Billion Dirhams through 974 deals during the first quarter of this year, a growth of 30.8% compared to the same period last year, in which sales reached 1.46 Million Dirhams through 884 deals.
This strong growth in demand for commercial real estate in Dubai is considered a milestone that indicates the positive economic indicators witnessed by the emirate. It also highlights the importance of commercial real estate in driving the local economy and reflects the strength of attracting investments and business, which contributes to enhancing the confidence of investors and businessmen.
In detail, commercial real estate sales in Dubai during the first quarter of this year amounted to 1.91 Billion Dirhams, distributed among commercial offices worth 1.35 Billion Dirhams through 665 deals, and commercial stores worth 566.6 Million Dirhams through 309 deals.
Under Construction
Sales of ready-made commercial offices accounted for the lion’s share of total office sales, with a value of 1.34 Billion Dirhams through 649 deals, while the value of off-plan commercial office sales amounted to 12.6 Million Dirhams through 171 deals.
The value of sales of ready-made commercial stores amounted to 246 Million Dirhams through 138 deals, while off-plan sales amounted to 320 Million Dirhams through 171 deals.
Geographical Distribution
According to geographical regions, the Business Bay area topped commercial office sales with 307 deals worth 612 Million Dirhams, followed by the Jumeirah Lakes Towers area with 220 deals worth 369 Million Dirhams, then the Burj Khalifa area with 7 deals worth 155 Million Dirhams, then the Barsha Heights area with 35. A deal worth 89 Million Dirhams.
Luxury Commercial Real Estate
The real estate market in Dubai is witnessing interesting mechanisms represented by strong demand for luxury commercial properties, as the month of January witnessed a sale deal for an office property in the Burj Khalifa area for a value of 44.4 Million Dirhams, and another in the same area last March for a value of 44.1 Million Dirhams, while the area of each property is 818 square meters. .
The third most expensive deal was for an office property in the Business Bay area, with an area of 572 square meters, sold for 16.7 Million Dirhams. The Jumeirah Lakes Towers area also witnessed a sale deal worth 12 Million Dirhams for a commercial property with an area of 296 square metres.
It seems that the market movement during the past year 2023 was driven by companies looking to rent new office spaces or expand their existing ones, but taking the cost into consideration. Now, we are witnessing greater optimism and companies focusing on the value that can be achieved by investing in impressive, upscale offices. It provides multiple advantages, including: the right place to invite clients to attend meetings, proximity to the headquarters of major regional and international companies, and happier and more motivated employees.
Positive Indicator
The growth in demand for commercial real estate in Dubai is considered a positive indicator of the expansion of business in the emirate, as the increase in demand for commercial space is usually associated with the growth of various economic sectors, such as trade, tourism, and financial services. Dubai is still considered an attractive destination for regional and international companies to establish their operations. This means an increased need for offices, shops, industrial and logistical spaces, in addition to an increase in economic confidence. When companies invest in their expansions and search for larger spaces, this means more confidence in the local economy and the ability to grow and continue.
Performance
The strong performance of the commercial real estate sector in Dubai is based on the rapid economic growth in the emirate, as economic diversification initiatives contribute to achieving noticeable qualitative leaps in line with the objectives of the Dubai Economic Agenda D33, which aims to sustain strong economic growth during the next decade, and establish Dubai’s position among the top three economic cities around the world.
Trust
Today, the confidence of international and regional companies and investors in the integrated commercial system in Dubai is increasing, and the good performance of the commercial real estate sector since the beginning of this year is not only due to the space allocated for offices, but also to the tendency of an increasing number of international brands to open regional centers for research and development, factories and logistics warehouses, taking advantage of One of the government’s ambitious plans to strengthen local manufacturing and innovation chains in the long term.