Future Projections and Current Trends in Dubai’s Office Market
Dubai’s Office Space Struggle: Demand Surpasses Supply
Dubai’s thirst for office space is unquenchable, with Grade A spaces predicted to be fully occupied by next year. The surge is fueled by a wave of foreign companies establishing regional bases in the emirate.
Industry Insight from Prathyusha Gurrapu
Prathyusha Gurrapu, from Cushman & Wakefield Core, forecasts a scarcity until at least 2026, as new constructions take years to complete. She emphasizes that pre-leasing is the norm, exacerbating the shortfall.
Occupancy Outlook
Gurrapu anticipates Grade A office occupancy to hit 95% by 2024’s end, inching towards full capacity by 2025, contrasting with global markets.
Expanding Demand Horizon
Behnam Bargh, CRC’s managing director, notes a 15% surge in secondary sales prices, reflecting heightened demand and value appreciation. This upward trajectory underscores Dubai’s appeal to investors and businesses alike.
Market Metrics
Betterhomes reports a rise in secondary office market prices, now at Dh1,062 per square foot. Despite surpassing 2019 levels, they remain below previous years.
Supply Projections
Gurrapu reveals no new office supplies in Q1, but projects over 1.85 million sqft to be handed over in 2024. Major players are gearing up to meet escalating demands, with upgrades and new launches in the pipeline.
Closing Thoughts
Dubai’s office market remains dynamic, with developers racing to match demand. While challenges persist, opportunities abound for investors eyeing Dubai’s thriving commercial landscape.