Dubai Commercial Property Market FY 2024 Insights

As we close the chapter to another year in Dubai’s commercial property market it is clear that this year, we reached extraordinary milestones that speak volumes about the resilience, innovation and global appeal of this dynamic city.

At CRC, we’ve been privileged to witness and contribute to the remarkable transformation of Dubai’s commercial property landscape. The numbers tell a compelling story: 9,038 transactions were recorded this year—a staggering 24% year-on-year increase. Equally noteworthy is the total transaction value, which surged to AED 90.1 billion, marking an 11% YoY growth. These figures aren’t just numbers; they represent the vision of investors, the hard work of entrepreneurs and the trust placed in Dubai as a global hub for commerce and opportunity.

Delving deeper into the market, the average selling price across different property segments at CRC showcased notable variations in 2024, reflecting the unique dynamics of each segment. Warehouse properties recorded an average price of AED 11.9 million, with a 20% YoY increase, while office properties saw a remarkable surge, standing at AED 3.8 million—an impressive 85% YoY growth. These figures underline the growing demand for both industrial and office spaces as businesses continue to expand and thrive in Dubai.

As we close another successful year, we remain committed to driving value, building trust and providing unparalleled expertise to our clients. At CRC, we see every transaction as a story of ambition and growth, and we are honoured to be part of these journeys.

Dubai commercial property

Commercial Sales Transactions | DLD

The commercial real estate market in Dubai has shown remarkable growth over the past five years, reaching new heights in both transaction volumes and total value by 2024. The volume of transactions surged to 9,038in 2024, marking a year-on-year (YoY) increase of 24%, while the total value reached AED 90.1 billion, reflecting an 11% YoY growth. 

Off-plan transactions accounted for 22% of the total activity, showcasing a growing investor preference for new developments offering attractive yields and price advantages. However, the secondary market continued to dominate, holding a commanding 88% share of transactions, underscoring the sustained demand for ready and income-generating commercial properties.

Dubai's economic resilience has been a key driver, underpinned by the diversification of its economy and significant growth in fintech, artificial intelligence, and tourism sectors. 

Government initiatives, including the AED 25 billion foreign direct investment program, have further bolstered market demand by attracting international businesses and investors. Policy reforms that simplify business operations, enhance investors' residency options and provide tax incentives have made Dubai a global investment hub.

Dubai commercial property

 

Office Segment Analysis

Dubai's office market showcased robust resilience and sustained demand in 2024, recording 2,972 office sales transactions, a 3% YoY increase. These transactions generated a total value of AED 6.5 billion, the highest on record, reflecting a significant 37% YoY growth. Office sales constituted 33% of the total commercial transaction volume, highlighting the critical role of this segment in the overall market. The demand for office spaces, especially in key business districts, continues to outpace supply, a trend expected to persist as more companies establish operations in Dubai.

A key driver of this growth is the influx of businesses, with over 70,000 new companies joining the Dubai Chamber of Commerce in 2024, reflecting a 3% YoY increase in company registrations. This growth, underpinned by Dubai's business-friendly policies and the Dubai Economic Agenda (D33), has significantly bolstered demand for commercial spaces, particularly offices and retail properties. 

The Dubai International Financial Centre (DIFC) has cemented its global hub position by attracting major players from China's banking and financial services industry. Notably, 30% of these entities are Global Fortune 500 companies, showcasing the DIFC’s appeal to high-profile organisations.

The most in-demand office locations for 2024 were Business Bay, Jumeirah Lakes Towers (JLT), and Dubai Silicon Oasis, reflecting their strategic positions and popularity among businesses. However, the market faces a supply crunch, especially for Grade A offices. Limited high-quality space has created fierce competition, pushing tenants to negotiate favourable lease terms. Medium-sized offices are in high demand, with many businesses opting to renew leases at higher costs rather than face the challenges of relocating.

Demand is largely driven by businesses expanding or relocating due to Dubai's strategic location and strong economy. Financial services firms, including hedge funds and asset management companies, are key contributors. This demand highlights Dubai's global appeal and reinforces its position as a leading commercial real estate market.

Dubai commercial property

The secondary office market dominated activity in 2024, accounting for 94% of total transaction volume. A total of 2,785 transactions were recorded, valued at AED 5.9 billion. Notably, 71% of these secondary transactions involved offices with a built-up area of less than 1,500 square feet (sq ft), reflecting strong demand for smaller, more flexible office spaces to accommodate businesses’ evolving operational needs.

The top locations for secondary office transactions in 2024 were Business Bay with a share of 42%, Jumeirah Lakes Towers (JLT) at 31%, and Dubai Silicon Oasis at 7%. These areas remained highly sought after due to their strategic locations, well-developed infrastructure, and appeal to businesses across various sectors.

Upcoming Office Supply

Data from Property Monitor indicates that over 1,400 office units are currently under construction, with delivery timelines stretching from 2025 to 2028. This pipeline highlights a controlled expansion aimed at meeting the growing demand for office spaces in Dubai’s prime business locations. A significant share of these units will be completed in JLT and Jumeirah Village Circle (JVC).

In 2024, key office space additions included 6 Falak in Dubai Media City, A2 within Dubai CommerCity, and Millennium Downtown on Sheikh Zayed Road. Several other major office projects were also unveiled, with expected completion dates ranging from 2027 to 2028. Among the notable upcoming free zone developments are the Immersive Tower in DIFC and Phase 2 of Uptown Dubai. On the other hand, the onshore office market remains tight, with Aldar’s mixed-use development on Sheikh Zayed Road marking one of the recent highlights.

Average Selling Prices: Secondary Market

In 2024, the average price per sq ft stood at AED 1,417, increasing by 27% YoY compared to 2023. This sharp rise reflects strong demand in the secondary market, driven by a supply crunch in Grade A office spaces and high competition for well-located, ready-to-occupy offices.

Key factors contributing to this increase include the surge in new company setups, the influx of global firms, and Dubai's strong economic performance. Additionally, heightened demand for smaller offices, especially in prime locations like Business Bay, JLT, and Dubai Silicon Oasis, has further bolstered price growth.

The market's performance in 2024 underscores the resilience of Dubai’s office sector, its appeal as a global business hub, and the shifting preferences toward ready-built, high-quality spaces in strategic areas.

Retail Segment Analysis 

Dubai’s retail real estate market demonstrated exceptional growth and activity in 2024, reaching new heights with a record-breaking 1,364 retail transactions, collectively valued at AED 3.2 billion, marking a significant 34% year-over-year increase. Retail transactions accounted for 15% of all commercial deals, with the off-plan segment dominating the market, contributing 65% of the total transaction value and 53% of the transaction volume.

Dubai commercial property

Record-breaking Performance

  • Dubai Mall set a new attendance record in 2024, welcoming over 111 million visitors, surpassing its previous record of 105 million visitors in 2023. This marks the second consecutive year the mall has exceeded 100 million visitors, reflecting substantial growth since 2022’s 88 million.
  • An AED 1.5 billion expansion is underway, which will add 240 luxury retail and dining outlets to the site, further cementing its position as a global retail destination.

Aviation-Driven Retail Impact

  • Dubai International Airport (DXB) retained its title as the World’s Busiest International Airport for 2024, recording 60.2 million seats. Airline capacity grew 7% YoY and was 12% higher than pre-pandemic levels in 2019, further boosting foot traffic for retail spaces associated with the airport.
  • Dubai Duty Free achieved record-breaking annual sales of AED 7.9 billion in 2024, with a strong surge in December.

New Developments

  • Union Coop has commenced construction of a new community mall in Al Khawaneej Second, expected to be completed by Q2 2025. Spanning 70,700 sq ft, approximately 70% of the retail space is already leased.
  • Emirates REIT finalised the sale of Trident Grand Mall, a two-story retail component of Trident Grand Residence in Jumeirah Beach Residences, for AED 73.5 million.
  • Sobha Realty has started work on the Dubai Hartland Mall, which will contribute an additional 115,000 sq ft of gross leasable area (GLA) to Dubai’s retail inventory.
  • Shamal Holding has awarded McLaren Construction the contract for the Nad Al Sheba Gardens Mall. This two-story retail and F&B destination will span a plot area of approximately 135,625 sq ft.

Industrial Segment Analysis

Dubai's industrial and trade sector demonstrated remarkable resilience and efficiency in 2024, with 35 warehouse transactions collectively valued at AED 284 million. Dubai Investments Park emerged as the most prominent location for these deals, showcasing its continued appeal as a hub for industrial activity. Notably, 30% of the transactions fell within the AED 5-10 million range, underscoring the sector's alignment with medium-scale business investments, which are essential for fueling sustainable economic growth.

 

The strong focus on strategically located industrial zones like Dubai Investments Park reflects the emirate's commitment to fostering an environment conducive to trade and logistics. By offering a diverse range of warehouse facilities tailored to various investment scales, Dubai continues to strengthen its position as a leader in the industrial and logistics sectors, ensuring robust contributions to its dynamic economy.

Dubai commercial property

 

Dubai’s industrial and trade sector continues to thrive, bolstered by its exceptional ability to attract Greenfield Foreign Direct Investment (FDI) projects. In the first half of 2024, Dubai maintained its position as the world’s top city for Greenfield FDI, securing 508 projects and growing its global share to 6.2%. The emirate's advanced infrastructure, investor-friendly regulations, and strategic initiatives have cemented its reputation as a global economic powerhouse.

This robust performance is further highlighted by Dubai’s dominance in the Middle East and North Africa (MENA) region, where it secured the top position for Greenfield FDI capital and projects. Strategic partnerships and a visionary economic framework have driven significant increases in FDI across diverse sectors like business services, software, textiles, and food and beverages.

Dubai’s ability to attract top-tier investors from countries like India, Switzerland, and the United States underscores its global appeal. Additionally, the industrial and trade sectors’ resilience is reflected in increased investments in building materials, IT services, and automotive manufacturing. Together, these achievements solidify Dubai’s role as a leading hub for business and investment on the world stage.

 

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 Unlike many other global markets, Dubai offers tax-free commercial real estate investments, meaning there are no property taxes, making it a cost-effective option.Additionally, the availability of 100% foreign ownership in designated free zones allows international investors to have full control over their commercial properties, adding to the appeal of the market.When looking to invest in commercial real estate, choosing the right location is essential.Areas like Business Bay and Downtown Dubai are prime spots for corporate offices and luxury retail stores due to their central location and high demand. 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