Due to a growing number of UAE-based businesses returning to in-person meetings and a growing number of foreign businesses wishing to establish operations there, there is an increased demand for high-end office space throughout the UAE.
In response to the changing needs of businesses, Bayti Real Estate, a premium real estate services specialist that specializes in offering high-quality commercial and residential spaces throughout the region, has revealed that they have recently closed a deal for a record-breaking price per square foot of office space in Dubai.
The Opus, Business Bay, is home to a 2,879-square-foot premium office space that was sold for AED7,040 ($1,917) per square foot. This is the sale transaction with the highest sale value per square foot that the Dubai Land Department (DLD) has ever recorded.
New benchmark
The renowned Zaha Hadid designed this office, which perfectly captures the need for high-end, Class A office space in Dubai. The sale has undoubtedly raised the bar for nearby commercial real estate and demonstrated The Opus’s ongoing appeal as a business center.
Commenting on the transaction, Tariq Williams, Chief Executive Officer of Bayti Real Estate, said: “This transaction is reflective of the ongoing positive trend in property demand across Dubai, the UAE and the rest of the region. We are seeing a significant shift in how businesses are approaching their office requirements.
“With increasing demand for flexible, fully serviced offices in prime locations, companies are prioritising spaces that can accommodate hybrid work models and offer collaborative environments. High-end, move-in-ready spaces in premium locations such as Business Bay, Downtown Dubai, and DIFC are in particularly high demand.
“With prime locations in short supply due to rising demand, businesses are increasingly seeking high-quality, well-located office spaces to meet their evolving needs. Dubai’s office market has responded with increasing occupancy rates, rising from 90.1% in Q1 2023 to 91.3% in Q1 2024, according to CBRE’s latest report,” Williams added.
Shorter flexible lease terms
There is a growing trend in the UAE for shorter, more flexible lease terms and office spaces that incorporate sustainable features and state-of-the-art technology. Nowadays, a lot of companies are looking for prime office spaces that offer flexibility and scalability while also reflecting their corporate image.
“This demand for flexibility and high-quality office environments is driving competitive bidding for Grade A spaces, with businesses keen to secure prime locations that offer both functionality and prestige,” Williams explained.
The robustness of the commercial property market in Dubai is derived from well-established economic principles and well-thought-out urban planning initiatives, such as the Dubai 2040 Urban Master Plan. It is anticipated that the real estate market will continue to grow steadily through 2025 as Dubai makes more infrastructure investments and works to attract foreign investors.