Mubasher - Abu Dhabi: A recent report issued by Bloomberg Intelligence stated that the rental return on high-quality sustainable office space in Abu Dhabi reached 6% by the end of 2024.

The report indicated that the size of the stock of these spaces in the emirate reached about 3 million square meters, explaining that the occupancy rate of office spaces in Abu Dhabi increased to 85% during the last quarter of 2024, compared to 75% in the previous year .

In Dubai, demand for office space continued to rise, with high-quality office stock standing at 7.9 million square metres. Vacancy rates in Dubai fell to 8% in Q4 2024, compared to 10% in the same period last year .

The report announced that both Abu Dhabi and Dubai are planning to expand their luxury real estate projects, as the Dubai International Financial Centre intends to add three new office towers, while Abu Dhabi seeks to expand its financial free zone 10-fold through an expansion project on Al Reem Island .

The report indicated that the commercial real estate market in the UAE outperforms many global markets, including Hong Kong, thanks to the increased demand for office space, and it expects this trend to continue in 2025. A survey conducted by the report showed that 43% of business owners in the UAE plan to expand their office space, while the real estate market in Hong Kong faces challenges due to the decline in demand .

Coworking space in the UAE saw a 14% increase in demand in Q4 2024, compared to a 10% decline in Hong Kong. In Dubai, around 92,000 sqm of office space was delivered in 2023, with 44,000 sqm of new supply expected in 2024 .

Office space rental and sales prices in the UAE have increased, with the increase in prices ranging between 10% and 25% compared to 2023. Real estate experts confirmed that these increases will continue in 2025, supported by continued demand for offices from companies operating in fields such as technology, media, artificial intelligence, robotics and healthcare .