Dubai Office Market Thrives as Commercial Real Estate Booms

Thursday, 27 November 2025

Dubai’s commercial real estate sector is experiencing unprecedented growth, with office rents climbing, occupancy near record highs, and investor confidence surging. Premium and flexible workspaces continue to attract multinational companies and innovative businesses across the city.

Key Highlights:

Rising Rents and High Occupancy: Average office rentals reach Dh190 per sq. ft., up 22% year-on-year, with citywide occupancy around 92% and premium Grade A space close to 95%.
Core Hubs in Demand: DIFC, Business Bay, and Dubai Internet City continue to attract strong demand due to infrastructure strength, prestige, and proximity to global business clusters.
Emerging Markets Gaining Momentum: JLT, Barsha Heights, Dubai South, MBR City, and Dubai Harbour are drawing tech, e-commerce, and digital media tenants.
Evolving Workspace Preferences: Rising interest in turnkey furnished offices, flexible leases, smart technology, and wellness-oriented workspace design aligned with hybrid work trends.
Investor Confidence: Grade A assets appeal to long-term investors due to rental stability, strong yields (7–8%), and low vacancy rates (~7.5%).
Robust Supply Pipeline: 0.89 million sq. ft. of office stock expected in 2025, 2.3 million sq. ft. in 2026, and 4.1 million sq. ft. in 2027, much of it already pre-leased.
Strong Market Activity: February 2025 commercial real estate sales rose 18.2% year-on-year to Dh9.7 billion, signaling solid investor optimism.
Future Outlook: Limited high-spec supply, rising occupancy, and strong tenant demand solidify Dubai’s position as a global business hub with sustainable long-term growth.