Dubai Commercial Real Estate Market Trends and Insights – Early 2025 (JAN -FEB)

Key Trends in Early 2025:

• Rise of Flexible Leasing Models: Businesses are increasingly opting for short-term leases and hybrid workspaces to accommodate fluctuating workforce needs.
• Smart Office Integration: More office buildings are integrating AI-driven building management systems and IoT-enabled workspaces to enhance efficiency and productivity.
• Demand for Grade-A Spaces: High occupancy rates in Grade-A office buildings, particularly in free zones offering 100% foreign ownership, continue to drive demand.

2. Retail Space: 

Average Retail Rental Rates:

• Prime Malls (Dubai Mall, Mall of the Emirates): AED 700 - 900 per Sq.ft
• Community Malls and High Street Retail: AED 250 - 400 per Sq.ft
• Emerging Retail Zones: AED 150 - 250 per Sq.ft

Key Trends in Early 2025:

• High-Tech Warehousing: There is a growing focus on the development of automated and climate-controlled warehouses to support the logistics needs of e-commerce, pharmaceuticals, and other industries.
• Logistics Free Zones: Activity in Dubai South and Jebel Ali Free Zone remains strong, attracting global trade and fulfillment operations.
• Sustainability in Logistics: A rise in green logistics solutions, including solar-powered warehouses and electric vehicle (EV) fleets for last-mile delivery, is contributing to more sustainable logistics operations.

February 2025 Snapshot:

• Off-Plan Transactions: AED 975.2 million (61.5% of total)

• Commercial Properties: AED 14.03 million (1.4%)

• Ready Property Transactions: AED 610.1 million (38.5% of total)