(MENAFN- The Arabian Post)

Dubai's office real estate market has experienced a remarkable upswing, with sales transactions reaching AED5.4 billion in the first half of the year, an 84% year-on-year increase. This surge comes on the back of a dynamic and growing demand for commercial spaces, particularly in the prime office and logistics segments, as noted in Cavendish Maxwell's latest Dubai Office Market Report.

According to the report, the number of office space transactions rose by 22% compared to the same period last year. The surge is largely attributed to a recovering economy and an increased appetite for high-quality commercial spaces as businesses continue to scale operations or relocate to more central locations. The report highlights that over 1,900 office deals were conducted across the city, showing a consistent interest from both local and international investors in Dubai's thriving office space market.

The increase in transaction value has sparked interest among real estate developers and investors looking to capitalise on the growing demand for commercial properties. The market's recovery comes after a period of uncertainty during the global pandemic, with many businesses now opting to secure office spaces to accommodate workforce expansion, high-end retail operations, or advanced logistical hubs.

A notable segment within this trend is the logistics sector, which has seen considerable growth due to Dubai's strategic position as a global trade hub. As businesses strive to optimise their supply chain and distribution networks, demand for office spaces designed with logistics in mind has intensified. This shift towards more tailored office spaces is shaping how developers and investors approach new commercial developments.

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Alongside the surge in demand, the report reveals that approximately 34,000 square metres of new office space were delivered to the market in the first half of the year. This new supply aims to meet the growing needs of companies seeking modern, flexible office environments, particularly in central business districts such as the Dubai International Financial Centre and Business Bay. Additionally, another 110,000 square metres are expected to enter the market by the end of 2025, providing more options for both businesses and investors.

For the year 2026, experts project that the supply of office space will increase significantly, with an additional 340,000 square metres expected to be delivered. By the time this new space comes online, the total gross leasable area of office space in Dubai is projected to reach an impressive 9.78 million square metres. This development is part of a wider trend where Dubai continues to expand its commercial real estate infrastructure in response to the growing population, economic diversification, and global demand.

Developers in the region are responding to this demand with projects that cater to various sectors, from financial institutions to tech firms, offering modern amenities and sustainable features. These developments are being designed with sustainability in mind, meeting the requirements of an increasingly eco-conscious market. As companies prioritise employee well-being and work-life balance, the incorporation of green building technologies and flexible workspaces has become a key differentiator in the office market.

Dubai's success in the office space sector is not only attributed to the demand from established businesses but also to the inflow of new companies entering the market. International corporations, particularly in finance, technology, and consulting, continue to be drawn to Dubai's favourable tax policies, world-class infrastructure, and access to a diverse, skilled workforce.

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