For many years, the UAE government and the authorities of the Emirate of Dubai have pursued a consistent and systematic policy aimed at the sustainable development of the economy and the commercial real estate market. A distinctive feature of this policy is its comprehensive nature, covering the development of all key segments – from infrastructure and logistics to high-tech clusters and the business environment.
Particular emphasis is placed on building long-term partnerships with leading international technology and innovation companies. In practice, this is reflected in the creation of specialised business clusters and the offering of competitive commercial leasing conditions tailored to the needs of global businesses.
TECOM Group as a centre of attraction for technology companies
Today, many global technology corporations have established regional and international offices in modern office and industrial complexes operated by the Dubai TECOM Group (TECOM). Such companies include Samsung, Huawei, Oracle, SAP, and others.
The presence of these corporations has a significant impact on the development of Dubai’s office market, generating demand for high-quality commercial premises that meet international standards, as well as for infrastructure designed to support high-tech businesses.
Rental rates and market characteristics within TECOM
Average rental rates for office space in TECOM zones have traditionally remained competitive and vary by property, building grade, and owner. As a rule, rental pricing is influenced by whether the premises are leased directly by a major developer or through a private owner.
Commercial real estate within TECOM zones has enjoyed stable demand from international companies over an extended period. This, in turn, has led to a shortage of large vacant office spaces, particularly in the segment of high-quality properties suitable for headquarters and regional offices.
New office developments and expansion of supply
To meet growing demand, Dubai authorities and leading developers have implemented and continue to implement large-scale projects to build modern business centres.
Among the most notable projects are:
- CD Brookfield Place, located within the Dubai International Financial Centre (DIFC) free zone;
- 1 Central, developed in the Dubai World Trade Centre (DWTC) area.
These projects are designed to offer Grade A office space that meets the requirements of international corporations. An additional advantage of such properties is the availability of a dual-licensing regime, which significantly expands the range of permitted activities for tenants.
Office and residential real estate market: current trends
Dubai’s office real estate market is characterised by relative stability in rental rates within the high-quality office segment, despite sustained demand from international and regional companies.
At the same time, the secondary office market is traditionally more sensitive to supply structure. The predominance of smaller office units can make it more difficult to lease large spaces; however, modern projects are designed from the outset to meet the needs of corporate tenants, which mitigates this risk.
As for the residential real estate market, many developers have shifted their focus to the mid-market segment, offering more compact, economically efficient properties. This approach allows for a broader pool of investors and end users, while also supporting long-term market sustainability.
Conclusion
TECOM Dubai and the associated business clusters remain one of the key platforms for the presence of technology and innovation companies in the region. The consistent policies of Dubai’s authorities, the development of modern infrastructure, and flexible regulatory solutions create a favourable environment for business operations and the long-term presence of international companies.
The Emirate of Dubai continues to expand its commercial real estate market and invites international companies to establish offices and expand their operations in a stable, predictable, and business-friendly jurisdiction.
