Dubai and Abu Dhabi office rents posted some of their strongest annual growth in years during the second quarter of 2024, according to JLL's UAE Real Estate Market Overview. A robust economy, diversified occupier demand, and a sustained push toward high-quality, sustainable workspaces are driving the surge across both emirates.
Office Market: Stock Expands as Rents Climb
Dubai's total office gross leasable area (GLA) rose by approximately 20,000 sq. m. in Q2 2024, bringing the city's total stock to around 9.26 million sq. m. Rents in the CBD and Business Bay area averaged AED 2,630 per sq. m. per annum — a 15% year-on-year increase.
Abu Dhabi's total office stock reached 3.95 million sq. m. after a further 7,500 sq. m. was added during the quarter. Average Grade A rents climbed 10% year-on-year to AED 2,085 per sq. m. per annum. An additional 125,000 sq. m. of office space is expected to complete in Abu Dhabi during the second half of 2024.
Faraz Ahmed, Research Director at JLL MENA, noted that new commercial developments will help satisfy the growing appetite for premium offices while reinforcing the UAE's status as a preferred business destination.
Residential Prices Rise Sharply
Dubai's residential market maintained strong momentum through the first half of 2024. Property prices climbed 28% and sales transaction volumes rose 34% compared to the same period in 2023. Sale prices in Dubai were up 20% year-on-year. Abu Dhabi recorded an 8% rise in villa prices and a 6% increase in apartment prices over the same period.
Retail Rents Post Double-Digit Gains
The retail sector saw sharp rental increases across both cities. Average rental rates in Dubai's primary and secondary malls rose 16% year-on-year, while Abu Dhabi's retail rents gained 11% over the same period — reflecting strong consumer footfall and limited new mall supply.
Hospitality Sector Defies Seasonal Slowdown
Despite the typical summer lull, Dubai and Abu Dhabi's hotel markets improved year-on-year. Dubai recorded a 2% increase in occupancy, with the average daily rate (ADR) rising 5% year-on-year. Abu Dhabi's ADR climbed 13% over the same period.
Industrial and Warehouse Rents Continue to Rise
The industrial sector maintained its upward trajectory. Warehouse rental costs in Dubai increased 14% year-on-year in Q2 2024, while Abu Dhabi recorded a 10% rise over the same period, driven by sustained demand from logistics and e-commerce occupiers.
UAE Positions Itself as a Business Hub
Across every segment — offices, residential, retail, hospitality, and industrial — the UAE real estate market delivered strong results in Q2 2024. With over 140,000 sq. m. of new office space expected by year-end and continued government focus on economic diversification, the country is reinforcing its position as one of the world's most attractive business environments.
