Knight Frank – Dubai Office Market Review, H2 23

The Dubai office market showed strong performance in Q4 2023, with average lease rates increasing in 20 out of 25 submarkets. The DIFC remained the most expensive location, with rents at Brookfield Place surpassing AED 275 psf. Jumeirah Lakes Towers, Business Bay, Barsha Heights, and JAFZA saw significant rent increases over the past year. Downtown had the highest office capital values, reaching AED 3,721 psf. Developers plan to add 1.16 million sqft of office space in the next two years to meet demand. Business services and manufacturing sectors were responsible for a large portion of new demand. The total volume of transactions in 2023 increased by 49%, reaching AED 7 billion, with sales transactions rising by 27.9% to 3889.