Dubai’s primary office market: AED 13.1bn and 1,668 transactions in a half-year

The residential segment takes all the attention, and meanwhile the primary office market posted the best half-year in its history: 1,668 transactions worth AED 13.1bn.

What sits behind the figure

The average ticket is around AED 7.9m. That is a level at which the buyer is not a private individual with a single unit but a company or an investor taking a floor.

For years offices lived in the shadow of housing: land was rarely allocated for them, launches were rare, and there were more people wanting space than there was space. Buying an office mostly meant buying from a previous owner who had decided to exit.

What changed

Several large office launches opened the segment to buyers who need volume and a clear payment structure. Primary supply began drawing off part of the demand that previously had no choice and went to the secondary market.

For the market that is a healthy shift: it eases pressure on secondary prices and gives the buyer an alternative. For an investor it widens the choice against the same shortage of quality product.

The caveat

A record half-year on primary does not mean offices have become plentiful. AED 13.1bn is still a fraction of a percent of the city's total office stock, which is measured in more than a hundred million square feet. The shortage of quality Grade A space has not gone anywhere, and it remains the main driver of rents.