Dubai’s commercial office market saw a boom in demand in 3Q 2024, pushing up both rental prices and occupancy rates in prime areas, according to Savills 3Q 2024 Dubai Office Market report (pdf). This surge is driven by a mix of new market entrants and expansion by existing businesses, particularly in banking, finance, technology, media, and telecommunications.

Occupancy rates in prime locations like DIFC, Downtown, and Business Bay now range between 95-97%. New projects are underway to bring 10 mn sqft of Grade A office space by 4Q 2028, with 85% located in free zones.

Grade A + affordable spaces rents are up: The average rent for Grade A offices rose 25% y-o-y quarter, with rents in Business Bay up 44% and Downtown up 36%. DIFC rents rose 21% y-o-y, with certain premium properties seeing rental increases of nearly 25%. Even in affordable zones, rental rates surged, with Dubai Science Park and Dubai Investments Park experiencing a 37% jump.

Demand is shifting toward sustainable and hybrid workspaces, with companies increasingly seeking green lease terms and ESG compliance. Open-plan and co-working setups, especially appealing to startups, are gaining traction due to flexible leases and quick setup options.

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