According to CBRE Group, office occupancy in Dubai has reached an all-time high of 91.3%, in stark contrast to the slump in cities such as London and New York.
Three new buildings rising
Dubai International Financial Centre (DIFC) is set to add three new office towers totaling one million square feet. According to information from the Dubai Government Communications Office, 60% of these will be used for office purposes and the rest for retail and restaurant space, with a total investment of around $270 million. The buildings are expected to be completed in the first quarter of 2026 and are targeted to cater to the large number of businesses entering Dubai.
Essa Kazim, president of DIFC, revealed that these additional spaces will provide a modern office environment for expanding businesses and new entrants to the market.“Demand trends over the past six months suggest that we will not see a slowdown this year,”he added. This suggests that Dubai's commercial real estate market is continuing to rebound and rejuvenate itself from a prolonged slump.
What's the attraction?
Dubai's commercial real estate boom has been made possible by a series of reforms implemented by the UAE in recent years. For example, the application requirements for long-term visas for expatriates have been relaxed and restrictions on shareholding by local partners have been removed. These measures have lowered the barriers to entry for businesses, making Dubai an even more attractive destination to work and live. In addition, the tax-free environment and favorable geographic location have enabled Dubai to efficiently connect with businesses in Asia, Europe and the Americas.
At the same time, the Dubai International Financial Center has become a preferred location for asset managers, insurance companies and hedge funds. In 2023 alone, the number of registered entities in the center grew by 34 percent to more than 5,500. And rapid growth in areas such as wealth management, family offices and fintech has further strengthened DIFC's position as a global financial hub.
Abu Dhabi is also on the rise
It's not just Dubai; Abu Dhabi's commercial real estate is also showing strong growth. For example, Abu Dhabi Global Market (ADGM) continues to attract international companies, making it one of the few bright spots in global commercial real estate.
Looking ahead
Dubai International Financial Center is also planning to launch another mixed-use development combining residential, retail and office space, which is expected to be announced later this year.Kazim said,“By that time, all the plots that will serve as the main business parks will be fully built out, and we will need to consider the 'DIFC 2.0 ' possibilities.”
The Middle East business hub is further cementing its position as a global leader with its unique policy advantages and continuously expanding commercial facilities. As new projects move forward, Dubai is demonstrating the potential for growth against the odds while addressing the challenges of the global economy.
