Dubai’s Office Market Enters a New Phase of Growth

Dubai’s office market continues to gain momentum, with the first months of 2026 further reinforcing the emirate’s position as one of the world’s most dynamic business hubs. Growth in the number of newly registered companies, the expansion of international corporations, and the limited supply of prime office space continue to drive strong demand from both occupiers and investors.

The total value of office transactions during the first quarter reached nearly €2 billion, representing a significant increase compared to the same period last year. The number of completed transactions also rose considerably, indicating that demand for commercial real estate is not concentrated solely in a few large deals but is supported by broad market activity.

Off-Plan Offices Outperform Completed Spaces

One of the most notable trends during the quarter was the growing demand for office developments under construction. For the first time in more than 15 years, the off-plan office segment surpassed completed office space in terms of transaction value. This reflects a shift in investor behaviour, as buyers increasingly seek opportunities to enter the market at an earlier stage and benefit from potential capital appreciation before project completion. More flexible payment plans offered by developers remain an additional advantage.

A large proportion of transactions within this segment were concentrated in several newly launched developments, further demonstrating market confidence in the future expansion of Dubai’s business infrastructure.

Business Activity Continues to Support Demand

The growth of the office market is closely linked to the expansion of Dubai’s corporate sector. In March alone, thousands of new companies were registered in the emirate, while the Dubai International Financial Centre (DIFC) continued to attract international firms and investment institutions. This influx of businesses is naturally increasing demand for high-quality office space. Companies are increasingly seeking modern workplaces that meet contemporary requirements for technology, workplace efficiency, and accessibility.

At the same time, demand for larger office units is also increasing, indicating that many companies are moving beyond the establishment phase and into active expansion across the region.

Sales Prices and Rents Continue to Rise

The limited availability of premium office space continues to place upward pressure on both sales prices and rental rates. During the first quarter, average office sale prices recorded double-digit growth, while rents maintained their upward trajectory.

The strongest increases were observed in established business districts such as DIFC, Downtown Dubai, Business Bay, Barsha Heights, and Jumeirah Lakes Towers. These locations remain the preferred choice for international companies due to their strong infrastructure, prestigious addresses, and convenient access to major business centres. According to market analysts, the shortage of Grade A office space is expected to continue supporting both rental growth and capital values over the coming years.

New Supply on the Horizon

To meet growing demand, Dubai is actively expanding its office stock. During the first quarter, several new business developments were delivered, including major Grade A office projects that were virtually fully leased before official completion.

Additional significant office supply is expected to enter the market by the end of the year, increasing the overall inventory. Nevertheless, experts do not anticipate a sharp market slowdown, as continued business growth and international investment inflows are expected to sustain strong demand.

The combination of a favourable tax environment, world-class infrastructure, and a steady influx of international companies continues to position Dubai as one of the most attractive business destinations in the world. For investors, the office sector is increasingly emerging as one of the strongest opportunities within the real estate market. Rising rents, limited supply of prime office space, and an expanding business ecosystem are creating favourable conditions for both stable income generation and long-term capital appreciation.