Dubai Market Update Q3 2023 (image)

Dubai Market Update Q3 2023

Dubai’s office market demand is at an all-time high with a sharp rise in occupancy levels and rents witnessed across the city.

Office Market Trends

  • The office market is witnessing occupancy levels at an all-time high. City-wide office occupancy is at 89% and Grade A office occupancy level is at 92%.
  • 13 Million sq. ft. of office stock has been absorbed in the last three years.
  • Only 2 Million sq. ft. of office space is expected to be handed over in the next two years, most of which is pre-leased.
  • City-wide office rents increased by 24% year-on-year and are 10% above 2014 peak values.
  • Downtown Dubai at 68% and Sheikh Zayed Road (Trade Center) at 50% saw the highest annual office rental increases.

Residential Market Trends

  • Off-plan launch volumes slowed down after rallying for several quarters. Q3 2023 saw only 11 new projects launched compared to 57 projects during Q2 2023 and 36 projects during Q3 2022.
  • Off-plan transactions also saw a sharp 62% drop in September 2023 compared to August 2023.
  • At over 20%, Q3 2023 witnessed the sharpest year-on-year sales price rise since the end of the pandemic. 2022 saw an 11% increase and 2021 saw a 12% increase during the same period.
  • Although residential rents continue to rise, the pace is slowing down. City-wide rents in Q3 2023 saw a 20% year-on-year increase compared to 28% in Q3 2022.
  • Residential gross yields are at a seven-year high, representing an improvement in returns for residential units due to higher increases in rental prices compared to sales prices.

Related Insights

Dubai Annual Market Update 2023/2024 (image)
Insight • UAE

Dubai Annual Market Update 2023/2024

Dubai is firmly demonstrating its position as a global economic hub and investment destination.
Prathyusha Gurrapu • 2024-01-29
Main Streets Across the World (image)
Insight • UAE

Main Streets Across the World

The near-term outlook for the retail sector remains cautious, but at the same time is nuanced between subsectors and geographical locations.
2024-01-05
Dubai Market Update Q3 2023 (image)
Insight • UAE

Dubai Market Update Q3 2023

Dubai’s office market demand is at an all-time high with a sharp rise in occupancy levels and rents witnessed across the city.
Prathyusha Gurrapu • 2023-12-13
YOUR PRIVACY MATTERS TO US

With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.