The UAE has emerged as a preferred destination for corporate occupiers to expand their office footprint. As a gateway city to the region, the bulk of this occupier demand has been concentrated in Dubai.
Globally, a shift in working patterns brought on by the Covid-19 pandemic has made corporate occupiers rethink their office space requirements.
Even though Dubai’s PMI has slipped to 54.3 in June compared with an average of 57.7 over the first quarter, firms expanded headcount more rapidly than over the previous two months to cope with ongoing growth in business.
Leasing activity during Q2 2024 has been driven by a mix of expansion activity by existing corporate occupiers and new market entrants.
To meet the growing demand for Grade A office space, new project launches have increased. The DIFC micro-market has witnessed two new project additions over the last six months with the launch of DIFC Square and Immersive Tower.
The landlord-favored market has led to an increase in rental values across most office districts in the city.
Globally, landlords have to work harder to attract and retain tenants, which has resulted in an increase in incentives and concessions.