Dubai’s office market is in the middle of a powerful growth cycle. The second half of 2025 is witnessing record demand, strong rental performance and limited availability of quality office spaces. This surge is reshaping the city’s commercial landscape, setting the stage for an even more competitive and opportunity-rich 2026.

The Current Market Landscape
Dubai’s office sector has been one of the strongest-performing segments in the region. In the first half of 2025 alone, office sales reached nearly AED 5.4 billion, an 84% jump compared to the previous year. Rents have risen by more than 25% in key districts such as DIFC, Downtown and Business Bay, reflecting the intense demand for premium space.

Vacancy levels across prime areas remain low, with most Grade-A buildings fully leased. This shortage has encouraged companies to explore new districts, while developers are racing to deliver more modern, flexible offices that meet today’s workspace needs.

Market Evolution and Shifts
Dubai’s commercial real estate market is evolving in line with changing business dynamics:

• Shift to quality and flexibility: Companies are prioritizing high-quality, tech-enabled and sustainable offices over traditional stock.

• Rising investor confidence: Off-plan office sales have increased sharply, highlighting long-term belief in Dubai’s business environment.

• Demand from SMEs and startups: Smaller, flexible offices are in high demand, especially among growing regional businesses.

• New business districts emerging: Locations beyond the traditional core such as Dubai Hills and JLT are gaining traction as businesses seek cost-effective, well-connected spaces.

The Outlook for 2026
The outlook remains strong. With an additional 340,000 sqm of new office space expected in 2026, the market is set to expand. However, demand is likely to stay ahead of supply, keeping rents firm and competition for prime locations high.

The focus will continue shifting toward:

• Sustainable buildings that meet environmental and energy standards.

• Smart workspaces integrating AI, automation, and digital infrastructure.

• Flexible layouts catering to hybrid work and shared-space models.

Dubai’s position as a global business hub, combined with stable economic growth and government-led diversification, ensures long-term demand for office and commercial space.

The current surge in activity presents a rare window of opportunity. Businesses are rethinking how they operate, invest and design their work environments. Developers, technology providers and workspace solution companies have a clear opening to introduce innovative products and services that align with this transformation.

With demand outpacing supply and a wave of new development on the horizon, this is the right time for companies to step forward to showcase, collaborate and position their offerings at the center of Dubai’s commercial evolution.

Dubai’s office boom isn’t just about real estate growth, it’s about the future of work in one of the world’s fastest-changing markets. The city’s commercial sector is moving toward smarter, greener and more connected spaces. For businesses operating in this ecosystem, the next phase of Dubai’s growth story is an invitation to lead.