OFFICE SUPPLY: RECOVERY UNDERWAY AMID LIMITED AVAILABILITY
Supply is expected to improve gradually from 2026 onwards, with key Q1 2026 completions including DIFC Square in DIFC, Technohub 4 in Dubai Silicon Oasis and Atrium in Barsha Heights. While the medium-term pipeline should ease some pressure, much of the upcoming stock remains pre-committed, reflecting sustained occupier demand for quality space.
MARKET SENTIMENT: RESILIENT BUT MORE CAUTIOUS
The Dubai office market is operating at historically high occupancy and rental levels, supported by a strong business environment, infrastructure, and continued government backing. Institutional landlords and developers have not introduced price corrections, with transactions continuing across major landlords and free zones. That said, there is a clear shift toward tenant retention, with flexibility and occupier support becoming central to sustaining occupancy and asset performance. Early signs include targeted incentives from Dubai International Financial Centre, Dubai Integrated Economic Zones Authority, and Dubai South, with others beginning to follow. Strata landlords are also offering rent-free periods while holding headline rents to attract tenants. Global occupiers with established UAE operations remain committed to their existing footprint, with limited evidence of downsizing to date. As a result, institutional landlords are prioritising occupancy stability to preserve long-term asset performance and investor confidence.
PRICING: RENTS REMAIN FIRM WITH LIMITED STOCK
Average city-wide office rents in Dubai stand at AED 211 per sqft, reflecting a 16% YoY increase with no significant QoQ change. Headline rents remain firm, supported by high occupancy and limited availability of Grade A space. Prime districts such as Dubai International Financial Centre, One Central and Downtown Dubai continue to command premium pricing. While space utilisation has softened slightly in recent weeks following the onset of the conflict, occupancy levels remain stable, with no notable relocations or downsizing observed. While still early, some sub-leasing availability may emerge should the uncertainty persist
