Dubai's commercial real estate market posted solid gains in the first quarter of 2024, with a 3% rise in total sales transactions and a 16% jump in overall sales value compared to Q1 2023, according to a market survey by CRC (Commercial Real Estate Consultants).
Sales Transactions Surge 27% at CRC
CRC recorded a 27% year-on-year increase in its own transactions during Q1 2024, with both the retail and office sectors driving the bulk of that growth. The broader Dubai commercial market confirmed the upward trend, with total sales volumes edging up 3% while the value of those deals climbed a more substantial 16%.
Office and Retail Segments Lead Growth
Office transactions across Dubai rose 8% year-on-year in Q1 2024, and the value of office sales jumped 28% — the strongest value gain of any commercial segment. Retail transactions outpaced offices on volume, surging 23% year-on-year, though retail sales value grew a more modest 2%.
Top Locations: Business Bay and JLT
Business Bay emerged as the most active location for office deals in Q1 2024, recording approximately 307 transactions. Jumeirah Lake Towers (JLT) followed with around 200 trades, confirming both districts as the premier hubs for commercial property activity in Dubai.
Shifting Dynamics in Leasing
Market data shows stagnant inquiry growth and a decline in new lease contracts across all property categories. The consistent rise in rental costs throughout Dubai has pushed more occupiers toward outright purchase rather than leasing — a structural shift reflected in the strong buyer-side numbers for the quarter.
Buyer Leads Jump 21%
CRC reported a 21% surge in buyer leads in Q1 2024, reflecting heightened investor and end-user appetite for Dubai commercial property. The firm's own transaction count rose 27% year-on-year over the same period, confirming that elevated interest is converting into completed deals.
Changing Payment Preferences
CRC's payment data reveals a move away from lump-sum settlements. Some 42% of buyers opted to pay in two instalments per month, while 29% chose four payments per month — a marked departure from the previously dominant single-payment model, suggesting developers and sellers are offering more flexible terms to capture demand.
