While Dubai's market continues to perform steadily across most indicators, signs of stabilization are emerging. The pace of growth is slowing, especially in the secondary residential market, which is gradually transitioning into a stabilization phase.
Office Market – Q2 2024
- Dubai’s office market gets a boost with several new launches, but supply shortage is likely to persist until 2027-2028
- City-wide office occupancy has reached a record high of 90%, with Grade A offices seeing an even higher rate of 93%
- City-wide office rents are up by 19% y-o-y as demand outpaces supply
- While most districts we track have seen strong rental growth, Business Bay has experienced the sharpest increase of over 64%
- Spatial requirements from our global occupiers are mainly concentrated above 20,000 sq. ft.
Residential Market – Q2 2024
- Signs of moderation are emerging in the residential secondary sales market with transaction volumes plateauing
- N5,391 units handed over in Q2 2024 and a total of 24,300 residential units expected over Q3 and Q4 2024
- Off-plan market continues to thrive with a 61% y-o-y transaction increase and a 42% y-o-y rise in project launches
- The ultra-prime market experienced a 12% y-o-y increase in transactions, however, quarterly numbers have dipped
- City-wide sales prices rose for the 16th consecutive quarter while rents rose for the 14th consecutive quarter
