Dubai Office Market Remains Strong
Dubai’s commercial real estate market continues to show strong momentum, particularly in high-quality office assets.
Rental-contract registrations rose 24.6% year-on-year in Q2 2026, while Dubai recorded 38,082 office leasing transactions, up 4% from the previous quarter. Office occupancy also remained high at around 94%.
Demand is being driven by financial services, technology companies, regional headquarters and other businesses seeking modern, efficient and well-connected Grade-A office space.
Investor activity remains equally strong. Off-plan office sales reached AED 13.1 billion across 1,668 transactions in H1 2026, with Business Bay accounting for approximately 52% of total sales value.
Prime Assets Continue to Outperform
Dubai office rents increased 13% year-on-year in Q2, while prime office rents rose by 16%.
Pricing has also strengthened in key locations. Average Downtown Dubai office values reached AED 5,130 per sq ft at the end of 2025, representing a 29% annual increase.
Broader investor confidence remains robust. Dubai recorded AED 252 billion in total real estate transactions in Q1 2026, while foreign real estate investment climbed 26% year-on-year to AED 148.35 billion.
However, the opportunity is becoming increasingly asset-specific. Around 24.2 million sq ft of new office supply is scheduled for delivery between 2026 and 2030, which could gradually moderate rental and price growth.
Outlook
Dubai’s commercial property outlook remains positive, but investors may need to become more selective as new supply enters the market.
The strongest opportunities are likely to remain in prime locations with metro connectivity, strong tenants, efficient layouts, professional building management and visible rental income.
Rather than relying on broad market momentum, the focus is increasingly shifting towards durable income and the scarcity of quality Grade-A offices.
The contents of this article were contributed by Haroon Anwar, Head of Global Wealth Management.
