Demand for office space in Dubai has increased due to the influx of Chinese and Indian businesses, ranking the emirate as the seventh most expensive place to rent a top office globally.
According to the Dubai Office Market report by real estate services firm Savills, leasing activity in the second quarter of the year was driven by an influx of corporates from the US and Europe (72% in Q2 2023 compared to 55% in Q1 2023), Dubai also experienced a “gradual inflow” of companies from Asia, specifically India and China.
The second quarter of 2023 saw one of the biggest numbers of new businesses opening their regional offices in Dubai, including China National Petroleum Corporation (CNPC) and the Indian insurance provider Bajaj Allianz Life.
According to the most recent Savills premier Office Costs study, the quarterly increase in rental values also placed Dubai as the eighth most expensive market for premier offices internationally, surpassing cities like Paris, Shanghai, and Delhi.
Chinese investments have returned to the GCC as a result of the pandemic, and the Dubai residential market has benefited as well. The sale of luxury apartments climbed in the first half of 2023 as a result of increasing demand from Russian investors and recently returned Chinese buyers, according to a recent report by real estate brokers Allsopp & Allsopp. The investments led to considerable price hikes for luxury apartments with water views in Downtown Dubai, Bluewaters, and Dubai Marina, ranging from 8 to 10%.