After several years of constrained delivery, Dubai’s office market is on the cusp of a supply rebound.
OFFICE SUPPLY: LIMITED IN 2025, WAVE OF NEW STOCK FROM 2026
After several years of constrained delivery, Dubai’s office market is on the cusp of a supply rebound. Just 0.89 million sqftis expected in 2025, but this will rise significantly to 2.3 million sqftin 2026 and over 4.1 million sqftin 2027. This upcoming wave is heavily concentrated in DIFC, Sheikh Zayed Road, Expo City, JLT, and Business Bay, and is largely composed of Grade A, ESG-compliant space designed to meet the requirements of global occupiers. Encouragingly, many of the Grade A freezone projects are already seeing strong pre-leasing momentum, signallingrobust demand from corporates seeking high-quality, institutional-grade space. With prime stock currently near full occupancy and limited availability across the market, the new supply is well-positioned to support business expansion, regional headquarters consolidation, and the continued growth of professional and financial services. While the volume of deliveries from 2026 onward warrants close observation, current demand patterns and the ongoing flight-to-quality suggest a positive absorption outlook for Dubai’s next generation of office developments.
DEMAND: RECORD-HIGH OCCUPANCY, LED BY GRADE A ASSETS
Office occupancy across Dubai remains strong, with Grade A stock leading at 95%. Grade B and C assets follow closely, averaging around 90%, contributing to a robust overall citywide occupancy rate of 92%. Prime districts including Sheikh Zayed Road, Dubai Design District (D3), One Central, and Downtown Dubai continue to register the highest levels of tenant retention.
PRICING: RENTS CONTINUE UPWARD WITH LIMITED STOCK
Average office rents in Dubai have climbed to AED 190 per sqft-a 22% YoY increase. DIFC maintains the highest rental levels, followed by One Central and Downtown Dubai. Persistently low vacancy rates have reinforced landlord confidence, driving continued rental growth and establishing a premium for well-located, high-spec office space.
