Dubai office rents spike as employers vie for talent

Office rents in Dubai rose sharply in the first half of this year as demand continues to grow, according to new research. 

Demand reached 580,000 sq ft in H1 2023, a 23 percent increase on the same period last year. 

Businesses are gravitating towards Grade A space, using the high-quality offices as a “showroom” to attract employees as well as clients, according to Faisal Durrani, a partner at real estate consultancy Knight Frank. 

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“One of the ways that businesses mitigate against the war for talent is by occupying the best office space that money can buy,” Durrani said an exclusive video interview. 

“That is why we see occupancy in the Grade A spaces hovering in mid-90s percent.”

DIFC remains the city’s star-performing location, driven by Brookfield Place, where rents remain well above the average of around AED260 per sq ft. 

Business Bay, the Trade Center District and Dubai Marina have recorded the largest uplifts in office rents in the past 12 months, with increases of 69 percent, 54 percent and 54 percent respectively.

Watch the full video to find out which Dubai-based property developer is buying office space in London, where the commercial real estate market has been sluggish since 2020.