Latest news with #VidhiShah
Trade Arabia
24-04-2025
- Business
- Trade Arabia
Dubai to deliver 415,000 sq m new office space by 2026-end
Dubai is set to deliver 415,000 sq m of new office space by the end of 2026, with the majority of new inventory in the A-grade category, according to new research from leading real estate advisory and property consultant, Cavendish Maxwell. Around 185,000 sqm of new space is due to come to market this year, with another 230,000 sqm in 2026, as demand for quality offices in Dubai continues to rise, it stated. By the end of next year, Dubai's total office space inventory will reach almost 9.7 sqm, compared to 6.26 sqm today, said the expert in its latest Dubai Office Market Report. 2024 saw record transaction volumes and values in recent years, with 3,150 sales valued at AED6.8 billion ($1.85 billion), a 36% rise in values and a 7.1% in increase in transactions, it added. Business Bay led the field for office sales, accounting for over 46% of transactions. Vidhi Shah, a Partner and Head of Commercial Valuation, Cavendish Maxwell, said: "Dubai's office market continues to perform strongly, supported by sustained corporate expansion and increased levels of foreign investment." "The city's stable macroeconomic environment, coupled with pro-business legislation, continues to attract both multinational occupiers and a growing base of start-ups and SMEs. This has translated into heightened competition for well-located, prime office space," she added. According to Shah, the market recorded significant growth in both sales and rental values over the past year. "Looking ahead, as Dubai further enhances its infrastructure, expands free zone offerings, and rolls out additional business-friendly reforms, demand is expected to remain resilient. However, with a substantial volume of new supply due for delivery over the next 18–24 months, it will be important to track how this impacts vacancy levels, absorption rates, and overall market sentiment," she added. Cavendish Maxwell said office values and transaction volumes reached their highest peak in 2024, marking four consecutive years of growth since the 2020 pandemic. Sales values have surged five-fold, from AED1 billion in 2020 to AED6.8 billion in 2024, primarily driven by increased demand from both local and international buyers, it stated. Ready offices continue to dominate sales activity, accounting for nearly 92% of transactions – down slightly from 2023 owing to a rise in off-plan sales. Increased demand for off-plan offices is fuelled by growing investor confidence, demand for new accommodation and attractive payment plans. Businesses are also securing office space for the long term by buying off-plan to avoid the risk of future rent hikes, it added. According to Cavendish Maxwell, there were 2,900 ready office sales and 250 off-plan transactions in 2024 – a year-on-year rise of 5% and 37% respectively. Average sales and rental prices up almost 25% Office sales and rental prices rose nearly a quarter last year, reflecting sustained demand for ready offices, business expansion and new companies being established. Sales prices reached approximately AED1,550 per square foot, while rental rates hit approximately AED145 per sq ft. The real estate expert said the surge in rental prices was mainly driven by high occupancy levels, which favour landlords and can be a challenge for tenants in securing prime office space. As demand for prime space continues to rise, landlords are likely to refurbish existing stock to command higher rentals, it added. Business Bay topped the ready office sales chart in 2024, with 1,343 sales representing more than 46% of all transactions, followed by Jumeirah Lakes Towers (920 sales), Dubai Silicon Oasis (200), Barsha Heights (148) and Motor City (68). In the off-plan market, Jumeirah Village Circle emerged as the most popular area, with 91 transactions, followed by Dubai Maritime City (65), Culture Village (47), Dubai Silicon Oasis (20) and Jumeirah Lakes Towers (15).
Zawya
24-04-2025
- Business
- Zawya
Dubai to deliver 415,000 sq m new office space by 2026-end
Dubai is set to deliver 415,000 sq m of new office space by the end of 2026, with the majority of new inventory in the A-grade category, according to new research from leading real estate advisory and property consultant, Cavendish Maxwell. Around 185,000 sqm of new space is due to come to market this year, with another 230,000 sqm in 2026, as demand for quality offices in Dubai continues to rise, it stated. By the end of next year, Dubai's total office space inventory will reach almost 9.7 sqm, compared to 6.26 sqm today, said the expert in its latest Dubai Office Market Report. 2024 saw record transaction volumes and values in recent years, with 3,150 sales valued at AED6.8 billion ($1.85 billion), a 36% rise in values and a 7.1% in increase in transactions, it added. Business Bay led the field for office sales, accounting for over 46% of transactions. Vidhi Shah, a Partner and Head of Commercial Valuation, Cavendish Maxwell, said: "Dubai's office market continues to perform strongly, supported by sustained corporate expansion and increased levels of foreign investment." "The city's stable macroeconomic environment, coupled with pro-business legislation, continues to attract both multinational occupiers and a growing base of start-ups and SMEs. This has translated into heightened competition for well-located, prime office space," she added. According to Shah, the market recorded significant growth in both sales and rental values over the past year. "Looking ahead, as Dubai further enhances its infrastructure, expands free zone offerings, and rolls out additional business-friendly reforms, demand is expected to remain resilient. However, with a substantial volume of new supply due for delivery over the next 18–24 months, it will be important to track how this impacts vacancy levels, absorption rates, and overall market sentiment," she added. Cavendish Maxwell said office values and transaction volumes reached their highest peak in 2024, marking four consecutive years of growth since the 2020 pandemic. Sales values have surged five-fold, from AED1 billion in 2020 to AED6.8 billion in 2024, primarily driven by increased demand from both local and international buyers, it stated. Ready offices continue to dominate sales activity, accounting for nearly 92% of transactions – down slightly from 2023 owing to a rise in off-plan sales. Increased demand for off-plan offices is fuelled by growing investor confidence, demand for new accommodation and attractive payment plans. Businesses are also securing office space for the long term by buying off-plan to avoid the risk of future rent hikes, it added. According to Cavendish Maxwell, there were 2,900 ready office sales and 250 off-plan transactions in 2024 – a year-on-year rise of 5% and 37% respectively. Average sales and rental prices up almost 25% Office sales and rental prices rose nearly a quarter last year, reflecting sustained demand for ready offices, business expansion and new companies being established. Sales prices reached approximately AED1,550 per square foot, while rental rates hit approximately AED145 per sq ft. The real estate expert said the surge in rental prices was mainly driven by high occupancy levels, which favour landlords and can be a challenge for tenants in securing prime office space. As demand for prime space continues to rise, landlords are likely to refurbish existing stock to command higher rentals, it added. Business Bay topped the ready office sales chart in 2024, with 1,343 sales representing more than 46% of all transactions, followed by Jumeirah Lakes Towers (920 sales), Dubai Silicon Oasis (200), Barsha Heights (148) and Motor City (68). In the off-plan market, Jumeirah Village Circle emerged as the most popular area, with 91 transactions, followed by Dubai Maritime City (65), Culture Village (47), Dubai Silicon Oasis (20) and Jumeirah Lakes Towers (15). Year-on-year office rents have risen across Dubai, with A-grade premises commanding some of the biggest year-on-year increases. In Downtown Dubai, rents rose by nearly 42%, with DIFC rates up by more than 38%. Barsha Heights saw the highest rise for non-A-grade spaces, with a 43.5% hike. Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Arabian Business
23-04-2025
- Business
- Arabian Business
Dubai office market to expand by 415,000 square metres through 2026: Report
Dubai's office space inventory will expand by 415,000 square metres by the end of 2026, with most new developments falling into the A-grade category, according to research from Cavendish Maxwell. The property consultant reports that 185,000 square metres will enter the market this year, followed by 230,000 square metres in 2026. This expansion will increase Dubai's total office space inventory to 9.7 million square metres from the current 6.26 million. Dubai office deals soar The research comes as Dubai's office market recorded 3,150 sales valued at AED6.8 billion in 2024, representing a 36 per cent increase in values and a 7.1 per cent rise in transactions. Business Bay dominated office sales, accounting for 46 per cent of all transactions. Vidhi Shah, Partner and Head of Commercial Valuation, Cavendish Maxwell, said: 'Dubai's office market continues to perform strongly, supported by sustained corporate expansion and increased levels of foreign investment. The city's stable macroeconomic environment, coupled with pro-business legislation, continues to attract both multinational occupiers and a growing base of start-ups and SMEs. This has translated into heightened competition for well-located, prime office space.' The 2024 figures mark four consecutive years of growth since the pandemic, with sales values increasing fivefold from AED1 billion in 2020 to AED6.8 billion last year. Ready offices constituted 92 per cent of transactions, though off-plan sales increased compared to 2023. The market saw 2,900 ready office sales and 250 off-plan transactions in 2024, representing year-on-year increases of 5 per cent and 37 per cent respectively. Rental prices surge sharply Both sales and rental prices rose by nearly 25 per cent last year. Sales prices reached approximately AED1,550 per square foot, while rental rates climbed to approximately AED145 per square foot. Cavendish Maxwell attributes the rental price surge to high occupancy levels, which create market conditions favouring landlords. Business Bay led ready office sales with 1,343 transactions, followed by Jumeirah Lakes Towers (920), Dubai Silicon Oasis (200), Barsha Heights (148) and Motor City (68). For off-plan sales, Jumeirah Village Circle topped the list with 91 transactions, followed by Dubai Maritime City (65), Culture Village (47), Dubai Silicon Oasis (20) and Jumeirah Lakes Towers (15). Rent increases varied across locations, with A-grade premises experiencing the largest year-on-year rises. Downtown Dubai saw rents increase by nearly 42 per cent, while DIFC rates climbed by more than 38 per cent. Barsha Heights recorded the highest increase for non-A-grade spaces at 43.5 per cent. Corporate demand driving growth The business services sector drove demand for new office space, accounting for 45 per cent of requirements. Finance and banking followed at 22 per cent, with technology and innovation companies (6 per cent), creative, media and design businesses (4 per cent), and real estate and property development firms (3 per cent) comprising smaller segments of demand. 'The market recorded significant growth in both sales and rental values over the past year. Looking ahead, as Dubai further enhances its infrastructure, expands free zone offerings, and rolls out additional business-friendly reforms, demand is expected to remain resilient. However, with a substantial volume of new supply due for delivery over the next 18–24 months, it will be important to track how this impacts vacancy levels, absorption rates, and overall market sentiment,' Shah concluded.
Zawya
23-04-2025
- Business
- Zawya
Dubai to deliver 415,000 sq metres of new office space by 2026
Further rises in activity expected throughout 2025 following year-on-year growth Dubai – Dubai is set to deliver 415,000 square metres of new office space by the end of 2026, with the majority of new inventory in the A-grade category, according to new research from leading real estate advisory and property consultant, Cavendish Maxwell. 185,000 sqm of new space is due to come to market this year, with another 230,000 sqm in 2026, as demand for quality offices in Dubai continues to rise. By the end of next year, Dubai's total office space inventory will reach almost 9.7 sqm, compared to 6.26 sqm today, the company said. 2024 saw record transaction volumes and values in recent years, with 3,150 sales valued at AED6.8 billion, a 36% rise in values and a 7.1% in increase in transactions, according to Cavendish Maxwell's latest Dubai Office Market Report, published this month. Business Bay led the field for office sales, accounting for over 46% of transactions. Vidhi Shah, Partner and Head of Commercial Valuation, Cavendish Maxwell, said: 'Dubai's office market continues to perform strongly, supported by sustained corporate expansion and increased levels of foreign investment. The city's stable macroeconomic environment, coupled with pro-business legislation, continues to attract both multinational occupiers and a growing base of start-ups and SMEs. This has translated into heightened competition for well-located, prime office space. 'The market recorded significant growth in both sales and rental values over the past year. Looking ahead, as Dubai further enhances its infrastructure, expands free zone offerings, and rolls out additional business-friendly reforms, demand is expected to remain resilient. However, with a substantial volume of new supply due for delivery over the next 18–24 months, it will be important to track how this impacts vacancy levels, absorption rates, and overall market sentiment.' Sales transactions Office values and transaction volumes reached their highest peak in 2024, marking four consecutive years of growth since the 2020 pandemic. Sales values have surged five-fold, from AED1 billion in 2020 to AED6.8 billion in 2024, primarily driven by increased demand from both local and international buyers. Ready offices continue to dominate sales activity, accounting for nearly 92% of transactions – down slightly from 2023 owing to a rise in off-plan sales. Increased demand for off-plan offices is fuelled by growing investor confidence, demand for new accommodation and attractive payment plans. Businesses are also securing office space for the long term by buying off-plan to avoid the risk of future rent hikes. There were 2,900 ready office sales and 250 off-plan transactions in 2024 – a year-on-year rise of 5% and 37% respectively. Average sales and rental prices up almost 25% Office sales and rental prices rose nearly a quarter last year, reflecting sustained demand for ready offices, business expansion and new companies being established. Sales prices reached approximately AED 1,550 per square foot, while rental rates hit approximately AED 145 per square foot. Cavendish Maxwell says that the surge in rental prices is mainly driven by high occupancy levels, which favour landlords and can be a challenge for tenants in securing prime office space. As demand for prime space continues to rise, landlords are likely to refurbish existing stock to command higher rentals. Location, location, location Business Bay topped the ready office sales chart in 2024, with 1,343 sales representing more than 46% of all transactions, followed by Jumeirah Lakes Towers (920 sales), Dubai Silicon Oasis (200), Barsha Heights (148) and Motor City (68). In the off-plan market, Jumeirah Village Circle emerged as the most popular area, with 91 transactions, followed by Dubai Maritime City (65), Culture Village (47), Dubai Silicon Oasis (20) and Jumeirah Lakes Towers (15). Rent increases by area Year-on-year office rents have risen across Dubai, with A-grade premises commanding some of the biggest year-on-year increases. In Downtown Dubai, rents rose by nearly 42%, with DIFC rates up by more than 38%. Barsha Heights saw the highest rise for non-A-grade spaces, with a 43.5% hike. New office requirements by sector The Business Services sector is leading demand for new office space, accounting for nearly 45% of the total, followed by the Finance and Banking sector at 22%. Around 6% of new space is taken up by Technology and Innovation companies, 4% by Creative, Media and Design businesses and 3% by Real Estate and Property Development firms. Other sectors make up the remainder. Download the full Cavendish Maxwell Office Market Performance report here. For media enquiries, please contact: Rebecca Rees at rebecca@ About Cavendish Maxwell Cavendish Maxwell is one of the Middle East's leading real estate advisory groups and property consultants, with offices in Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Kuwait City and Muscat. The company is a member of the Royal Institution of Chartered Surveyors (RICS) and offers a full range of property-related services, including valuation, strategic advisory, research, project and building consultancy and investment and commercial agency expertise. With a team of experienced professionals and a commitment to delivering exceptional service, Cavendish Maxwell has established itself as a trusted advisor in the regional real estate market.
