Dubai Real Estate: Commercial Property Market Sees Growth in Q1 2024

By Business Bay Office-related deals accounted for roughly 307 transactions. 

According to the market survey of the commercial real estate sector released by CRC (Commercial Real Estate Consultants) in the beginning of 2024, the commercial real estate market in the Dubai has registered the appreciable price increase in 1st quarter of 2024. The commercial sector across Dubai registered a total sales transaction of about 3 percent in the first quarter of this year and a remarkable 16 percent rise in the total sales value in comparison with the first quarter of last year. 

Key Highlights

Sales Transactions Surge:

CRC made 27 % increase in number of transactions when compared with one and the same period a year ago, and retail and office sectors being the main contributors for this growth. 

Office and Retail Segments:

Office transactions have shown an 8 percent rise year over year, on the other hand, retail rate has rocketed by 23 percent. Office sales value jumped with a 28 percent while the value of retail sales went up only 2%.

Top Locations

Business Baise area became the most popular for office deals number in first quarter of 2024 where 300 transactions happened, and Jumeirah Lake Towers followed with 200 trades. 

Shifting Dynamics in Leasing

Market trends show a stagnant inquiry growth, along with a downward movement in new contracts for all categories of properties. It is this creed that has seen clients put their money in investment and procurement of properties rather than leasing.  This is because the cost of rentals have consistently gone up in all classes and locations across Dubai. 

Increased Buyer Interest

Quarter 1 of this year saw a surge of 21% in buyer leads at CRC, as this high number of inquiries showed a lot of interest in the market. On the other hand, the firm ‘s transactions went up by 27% (year-on-year comparison). 

Changing Payment Preferences

The CRC data of payment option shows that 42 percent of the customers are paid twice in one monthly pay, and 29 percent of the clients are paid four times in a month. With this, a new way of life has been born that differed from the once-dominant trend of single pay.