Dubai office rents surge amid commercial boom

Dubai's commercial real estate sector is entering a powerful new growth phase, fuelled by increasing demand from occupiers and investors alike.

- Issac John [e-mail]

According to fresh research from Chestertons Mena, average office rents are climbing, occupancy remains near record highs, and the outlook for Grade A and logistics-led space has never looked stronger.

Chestertons' latest findings show sustained demand for premium offices, especially in core hubs such as DIFC, Business Bay and Dubai Internet City. These districts continue to command the most attention, thanks to their infrastructure, prestige and proximity to international business activity. The limited availability of Grade A space has helped push occupancy levels to approximately 95 per cent, with citywide office occupancy close to 92 per cent, according to the firm.

The surge in demand has translated into steep rent growth. Chestertons' data (based on Q1 trends) suggest that average office rentals in Dubai are reaching around Dh 190 per square foot, representing a 22 per cent year-on-year increase. That gain is being driven in part by a wave of professional services firms, multinational relocations, and expanding regulated-sector businesses.