Annual Values and Volumes
Office sales have always made up a small portion of the real estate market in Dubai. However, since 2009, the percentage of total sales that offices have accounted for has been declining. 2023 saw the lowest portion of office sales relative to all citywide sales since 2009, with just over 2% and 1% of citywide volume and value respectively coming from offices.
Although the generally accepted consensus is that 2014 was a peak year for Dubai, parsing the data for office sales prices and value reveals that 2009 was actually far better for the commercial real estate market. Office prices per square foot, rental prices and rental yields have yet to return to the heights seen in 2009.
Office Price Differences
Across a variety of both A grade and B grade areas, we can see that far fewer office units sold above the citywide average price per square foot in 2023 than in 2009. Furthermore, the premiums in 2009 were much higher than in 2023, further reinforcing the notion that 2009 was, in fact, the peak year for commercial real estate.