The emirate continues to grapple with a sharp downturn in the commercial real estate market, which has led to lower occupancy rates and rental yields around the world. There is currently a particularly high demand for real estate in the central business district. This suggests that clients prefer high-quality offices in a convenient location, experts say.
In addition, as before, there is significant interest from multinational companies seeking to expand their presence in Dubai and the region. The influx of companies setting up offices in Dubai has bolstered the emirate’s commercial real estate market and helped end a years-long market downturn. According to the latest data, the average occupancy rate rose to 92.7% from 84.8% in Q2 amid an uptick in demand.
The average rent for prime commercial property in Dubai increased by 17%. As a result, average prices exceeded 2019 levels. This compares to a 5% increase in London’s luxury real estate segment.