Dubai’s commercial real estate market experienced an uptick in the first quarter of 2024, according to the latest market report from CRC (Commercial Real Estate), a Betterhomes group company.
Total sales transactions in the commercial sector across Dubai rose 3 percent in Q1 2024 compared to Q1 2023, the report states.
The total value of sales saw a more substantial increase of 16 percent over the same period.
“We have experienced a notable surge in transactions, registering a remarkable 27 percent increase compared to the same period last year. However, amidst these positive developments, it’s crucial to acknowledge the shifting dynamics within the leasing segment,” Behnam Bargh, Managing Director of CRC said.
The office and retail segments were key drivers of the growth. Office transactions surged 8 pecent year-on-year, while retail transactions jumped 23 percent. The value of office sales spiked 28 percent, and retail sales value increased 2 percent.
Business Bay emerged as the top location for office deals in Q1 2024, with 307 transactions recorded. Jumeirah Lake Towers followed with 220 transactions. However, the leasing market presented a mixed picture.
“While overall Tenant leads have surged, we’ve witnessed a decrease in leasing transactions across all segments. This trend can be attributed to clients opting to invest and purchase properties rather than lease, driven by escalating rental prices across all segments and locations in Dubai,” Bargh said.
Buyer leads at CRC climbed 21 percent compared to Q1 2023, signalling heightened interest in the market. The firm’s transactions jumped 27 percent year-on-year.
CRC observed a shift in payment preferences, with 42 percent of clients opting for two-cheque payments and 29 percent choosing four-cheque options, a move away from the once-prevalent single-cheque approach.
Follow us on
