Dubai’s commercial property market is going strong, whilst global rental yields and occupancy rates in the segment are slumping. As stated by Abdulla Belhoul, chief executive officer of TECOM Group, there is a high demand for the central business district, which means that customers tend to opt for A-grade offices in upscale locations. Also, TECOM Group continues to see strong interest from international companies looking to expand their business in the emirate and in the region.

TECOM Group reported a 6 % revenue increase in Q2 2023, reaching AED 535M (USD 146M). Among its tenants are Meta Platforms and Alphabet. The company added over 1,500 new tenants in H1 2023 and its occupancy rates stood at a whopping 87 %. This clearly demonstrates the investment potential of local commercial properties and the opportunity to generate income for office owners.

An office tower in the heart of the city’s financial district has drawn interest from over a dozen entities worldwide, according to Bloomberg. This makes a huge contrast with the millions of sq. ft of office space dumped by tech giants in the USA, for instance.

TECOM Group manages an array of business districts in Dubai, such as Dubai Media City, Dubai Internet City and Dubai Studio City. According to Abdulla Belhoul, whilst new units are being built after years of low construction activity, demand will continue to surpass supply.