Sales of commercial real estate (offices and shops) in Dubai achieved a significant leap during the first 11 months of 2024, growing by 43.3% compared to the same period in 2023, and also exceeding the entire sales of 2023, reflecting the continued strength of demand for commercial spaces and an indication of the expansion of companies and businesses in the emirate.
According to data from the Dubai Land Department, sales of commercial real estate in Dubai jumped to AED 8.6 billion through 3,968 transactions during the first 11 months of 2024, a growth of 43.3% compared to the same period in 2023, which amounted to AED 6 billion through 3,554 transactions. However, it exceeded the value of commercial real estate sales during the entire year 2023, which amounted to AED 6.5 billion through 3,883 transactions, a growth of 32.3%.
The strong growth in commercial real estate sales reflects the sustainability and development of the local economy and increased confidence in the business environment, which enhances the city's attractiveness to international investments. The increasing demand, especially for premium offices, also indicates the diversity of economic sectors such as technology, financial services and tourism, and the emirate's ability to attract more regional and international institutions seeking to settle and launch from the region.
Sales during the mentioned period were distributed as follows: AED 6 billion for offices, resulting from 2,775 transactions, and AED 2.6 billion for shops, resulting from 1,193 transactions. Ready commercial office sales accounted for the largest share of total office sales, at AED 5.4 billion through 2,618 transactions.
Off-plan sales of commercial offices amounted to AED 567 million through 157 transactions, while off-plan sales of shops amounted to AED 1.5 billion through 604 transactions, and ready sales amounted to AED 1.08 billion through 589 transactions.
According to the regions, Business Bay topped commercial office sales through 1,176 transactions worth AED 2.8 billion, followed by Jumeirah Lakes Towers through 878 transactions worth AED 1.5 billion, then Burj Khalifa through 31 transactions worth AED 509 million, then Barsha Heights through 141 transactions worth AED 346 million.
Demand in Dubai is not limited to luxury residential properties Not only that, but it also extends to luxury office properties, as major companies seek to conclude deals in the most prominent landmarks and commercial areas in the emirate, especially premium offices such as the Dubai International Financial Centre and Business Bay, where the market recorded two sales deals for two office properties under construction in the Business Bay area, each valued at AED 83 million, as well as the sale of another office property off-plan in the same area for AED 75 million, in addition to the sale of a property in the Burj Khalifa area for AED 50 million.
The search among tenants was directed towards apartments by 80%, compared to 20% for villas. For buyers, searches were focused on villas (43%) and apartments (57%).
In contrast, the ready real estate market recorded 5,931 sales, which represents a decrease of about 6% in terms of the number of sales. In terms of value, ready real estate market sales amounted to approximately AED 24.8 billion, achieving a decrease of approximately 12.22% compared to November 2023, when the value amounted to AED 28.3 billion.
Rental Trends
About 65% of tenants looking for apartments preferred furnished units, while 34% went for unfurnished options.
Those looking for villas or independent houses (townhouses) for rent showed different preferences, as approximately 51% searched for unfurnished units and 48% for furnished properties.
35% of tenants looking for apartments focused on one-bedroom residential units, while 31% preferred two-bedroom apartments and 24% studios.
40% of tenants looking for villas searched for three-bedroom units, while 38% of investors were looking for four-bedroom or more options.
The most searched areas for apartment rentals included Jumeirah Village Circle, Dubai Marina, Downtown Dubai, Business Bay, and Deira.
Those looking for villas and townhouses were interested in Jumeirah, Dubai Hills Estate, Damac Hills 2, Al Barsha, and Umm Suqeim.
Ownership Market Trends
33% of investors were looking for one-bedroom units, while 35% were looking for two-bedroom apartments, and 15% preferred studios.
37% of those looking for villas or townhouses preferred three-bedroom units, and 50% were looking for four-bedroom or more options.
The most popular areas for apartment ownership included Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Palm Jumeirah.
Dubai Hills Estate, Palm Jumeirah, Al Furjan, Dubailand, and Mohammed Bin Rashid City topped the list of the most desirable areas for owning villas or independent homes (townhouses).
A strategic vision for future cities
DLD’s participation comes within the framework of its commitment to achieving an ambitious vision aimed at consolidating Dubai’s position as an attractive destination for global real estate investments. Dr. Mahmoud Al Burai, Director of the Real Estate Policies and Innovation Department at the Department, stated that the Dubai Urban Plan 2040 and the Dubai Economic Agenda D33 form the basis for achieving this vision, by striking a balance between economic, social and environmental development, with a focus on quality of life.
Innovative initiatives to boost the real estate market
Al Burai touched on the “Reis Real Estate Innovation” initiative, which relies on advanced technology and artificial intelligence to transform Dubai’s real estate market into a global model. The initiative aims to:
- Enhance transparency in the market.
- Develop innovative investment products.
- Improve the investor experience using smart and sustainable solutions.
He also referred to the Real Estate Tokenization Initiative which relies on blockchain technology, allowing investors to access flexible investment opportunities, and contributes to enhancing efficiency and transparency.
Sustainability and Smart Mobility
Al-Barai stressed that sustainability and flexibility are two main pillars of the Dubai Real Estate Strategy 2033, referring to the City of 20 model Minute” which focuses on sustainable mobility and easy access to services. He also stressed the importance of cooperation with the private sector to develop innovative projects that meet the needs of different segments of society.
Continued commitment to digital transformation
The Land Department’s participation in the LiveableCitiesX Summit confirms its commitment to enhancing digital transformation and achieving the goals of the Dubai Digital Strategy, which enhances Dubai’s competitiveness as a leading global destination in the real estate sector.
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