Office boom, green dreams, and big moves: The Middle East’s real estate glow-up

Visionary policies and strategic investments propel the region’s commercial real estate into a new era of innovation and sustainability

The Middle East’s commercial real estate market is entering a new era, shaped by regional ambitions to diversify economies, attract international capital, and redefine urban living. According to JLL, Saudi Arabia’s real estate sector posted a 3.6 percent annual growth in Q4 2024, driven by both residential and commercial segments, indicating the strength of Vision 2030’s momentum. 

Saudi Arabia: Office space fuels economic transformation 

Saudi Arabia’s commercial office space is poised for significant expansion. OpenPR reported that the country’s office real estate market is expected to grow from USD19.49 billion in 2024 to USD36.15 billion by 2033, at a CAGR of 7.1 percent. This growth trajectory mirrors increased foreign company presence and rising demand for executive housing and office space. 

James A. Kaplan, CEO of Destination Capital Company Limited and member of the PropertyGuru Asia Property Awards (Middle East) Judging Panel, shared: 

“As the Kingdom of Saudi Arabia continues to rapidly transform and diversify its economy and society, real estate assets such as residential and commercial office space will become increasingly attractive opportunities for investors and developers. This is particularly true as more international companies open subsidiary operations in the Kingdom and require office premises and housing for their executives.” 

Such transformation is being rewarded. At the 19th PropertyGuru Asia Property Awards Grand Final 2024, Saudi Arabia’s Oud Real-Estate Development Company was recognised as Best Mixed Use Developer (Asia), while its landmark project The North Yard won Best Retail Office Development (Asia) and Best Retail Office Interior Design (Asia). 

Dubai: Commercial deals surge as foreign interest rises 

Meanwhile, Dubai is seeing a strong rebound in its commercial real estate sector. Dubai’s office and industrial segments have demonstrated robust performance in early 2025, revealed Arabian Business. The volume of commercial transactions increased by 18.2 percent in Q1, while office prices rose by 15 percent, driven by resilient demand in Business Bay, JLT, and Motor City. 

These dynamics reflect deeper shifts in the region’s economic landscape, as explained by Stephen Oehme, Director of Quantum Analysis PTE LTD Singapore and fellow judging panel member: 

“The 21st century is unfolding as an era of unprecedented transformation, where digital and physical realms converge to redefine how humanity inhabits the planet. Over the first 25 percent of this century, breakthroughs like the iPhone, cloud computing, and generative AI are reshaping societies, propelling innovation at breakneck speed. Yet this is merely the prologue. As globalisation evolves, regions that align vision, policy, and infrastructure will emerge as its new protagonists.  

The Middle East, aspiring to become “the best place on Earth to live,” is scripting one of this century’s most compelling narratives. Far from relying on oil alone, the region is engineering a holistic metamorphosis.” 

He elaborates that frameworks such as Vision 2030 and Vision 2071 have laid down actionable blueprints, not just aspirations: 

“Non-oil sectors already drive 50 to 80 percent of GDP in the region’s key economies, buoyed by low and/or tax-free regimes, world-class logistics, and a modern tech-savvy population set to grow another 20 percent this decade.” 

These national visions have positioned commercial and office real estate as not merely functional infrastructure but catalysts of transformation. 

“When multinationals flock to Gulf financial districts or innovation hubs, they are not just leasing office space—they are anchoring ecosystems of talent and cross-border trade. Next-generation megaprojects, blending workspaces with smart infrastructure and renewable energy, are redefining urban potential,” Oehme said. 

Abu Dhabi: Demand outpaces supply 

In Abu Dhabi, the commercial property market is heating up. As reported by Arabian Business, prime office space reached 95 percent occupancy in 2024, driven by limited supply and strong demand. Developers are responding: over 100,000 square metres of new office space is expected to be added in 2025, including key projects in Masdar City. 

This is in line with the emirate’s Economic Vision 2030, aimed at diversifying beyond hydrocarbons while promoting sustainability and infrastructure development. 

Innovation, agility, and global relevance 

Oehme noted that while other regions may be slowed by inertia, the Gulf is pushing forward at “warp speed”: 

“The region’s secret? Collective agility. When AI surged globally, they pioneered governance frameworks. As remote work reshaped labour, they launched talent-friendly visas. As climate urgency intensified, they pledged world-leading renewable targets, with solar parks and hydrogen hubs now dotting deserts.” 

“The Middle East’s commercial spaces are not chasing growth—they are facilitating a metamorphosis. From fintech labs to sustainable innovation parks, these sectors will house the industries and talent propelling a post-hydrocarbon future. The time for skepticism has passed; the trajectory is set. Those engaging now will shape it; those hesitating risk missing the rewards of this pivotal transformation,” he added. 

According to Economy Middle East, these trends are not limited to Saudi Arabia or the UAE. Across the region, commercial real estate growth is backed by non-oil GDP contributions rising and an increasingly tech-driven workforce. 

Commercial real estate as the foundation of growth 

As developers continue to align with long-term national blueprints, the Middle East’s commercial property sectors will underpin the region’s next economic chapter. 

“The 21st century’s economic map is being redrawn. In the Middle East, the blueprint is ready, the cement wet, the doors open. The only question is: Who will step inside?” Oehme concluded. 

Know any award-worthy residential, commercial, or industrial projects in the country? Nominate them for the 2nd annual PropertyGuru Asia Property Awards (Middle East) on or before 11 July 2025. To know more, visit AsiaPropertyAwards.com/Award/MiddleEast/.

Gynen Kyra Toriano, Digital Content Manager at PropertyGuru, wrote this article. For more information, email: [email protected].