Dubai’s office market is currently navigating a more balanced phase, showcasing resilience even as leasing activity holds steady. According to Savills, a global leader in real estate services, the demand from occupiers remains strong, particularly for high-quality office spaces. The latest Dubai Office Market Report illustrates a trend towards stability, attributed to limited Grade A office availability and the location’s appeal as a preferred business hub.

Current Market Status

Data from the Dubai Land Department (DLD) reveals that there were 38,082 office leasing transactions in the second quarter of 2026, marking a modest 4% increase from the previous quarter. This growth is largely driven by new leases in smaller office units, with transactions below 500 square feet witnessing a remarkable 17% rise. Such activity indicates that small and medium-sized enterprises (SMEs), startups, and new entrants continue to be attracted by Dubai’s favorable business climate.

Moreover, there was a notable uptick in new lease transactions, increasing by 16% to reach a total of 27,121. On the flip side, lease renewals also played a significant role, amounting to 10,961. However, larger companies are taking longer to make decisions, especially given the regional geopolitical uncertainties. Many are prioritizing renewals and cautious expansions while postponing major relocations. These deferrals should not be interpreted as cancellations; rather, they may lead to a more vibrant leasing environment as overall business confidence improves.

Demand Trends in Office Space

The demand for premium office space remains a standout in this market scenario. Savills highlights that, although data from the DLD does not include leasing within the Dubai International Financial Centre (DIFC), major developments like DIFC Square have been largely pre-leased ahead of their completion. The report finds that such projects are sustaining strong leasing activity, indicating a healthy appetite for Grade A offices.

Looking to the future, the Immersive Tower, set for completion in July 2027, already has significant interest, emphasizing ongoing demand for high-quality upcoming spaces. This sustained interest reflects an underlying trend towards optimizing space in the office market, as businesses increasingly seek out Grade A properties.

Market Outlook

As for rental prices, the average market rent has stabilized at AED 238 per square foot, which shows resilience despite the absence of rental growth for the first time since early 2021. Savills asserts that this stabilization is not indicative of a market downturn but rather a phase of equilibrium rooted in limited Grade A availability and low vacancy rates across premier office locations in Dubai.

Looking ahead, around 1.9 million square feet of office space is expected to be delivered in 2026. This pipeline could surpass 4.2 million square feet by 2030, although much of it is likely to be pre-leased or absorbed by existing demand. This scenario emphasizes the need for early engagement from prospective tenants seeking high-quality office spaces.

With a focus on the future, Savills’ Toby Hall stated that demand for premium office accommodation would persist, especially in financial services, technology, and professional sectors. As geopolitical tensions ease, it is anticipated that businesses will continue to renew and selectively expand their operations, contributing to a healthy leasing environment in Dubai. Overall, Dubai’s strong economic fundamentals set the stage for sustained activity and rental stability in the office market moving forward.