Dubai’s Prime Office Supply Set to Reach 8.2 Million Sqft by 2028
Businesses are shifting from Dubai’s central districts to emerging areas like Expo City due to a shortage of high-quality office space, which remains in exceptionally high demand.
With supply struggling to keep pace in prime locations, companies are securing office buildings during construction to ensure access to premium workspaces.
“Occupiers continue to prioritize quality, prompting businesses to move beyond central Dubai to newer districts where office space is available. As key business areas approach full capacity, companies are exploring new locations for expansion,” said Adam Wynne, partner and head of commercial agency, Dubai, at Knight Frank.
“Areas like Dubai Science Park and Expo City are gaining traction, attracting tenants with modern facilities and competitive rental rates,” he added.
Demand for A-Grade office spaces has surged, with some locations reaching full occupancy and most maintaining over 90 per cent occupancy due to an influx of new businesses into the city.
Several multinational firms have relocated their regional and global headquarters to Dubai, drawn by geopolitical stability, zero income tax, and relatively affordable property prices compared to other major cities.
As of Q4 2024, Dubai International Financial Centre (DIFC) reported nearly full occupancy, while 17 Grade-A office buildings along Sheikh Zayed Road tracked by Knight Frank recorded an average occupancy of 95.4 per cent.
Asteco reported that over 700,000 sqft of new office space was added across Dubai in 2024.
Offices Snapped Up During Construction
In the latter half of 2024, office lease rates in key submarkets across Dubai saw an average increase of 9.1 per cent, with the highest rental growth recorded in the Trade Centre District.
Faisal Durrani, partner and head of research for MENA at Knight Frank, attributes rising office space demand to both new business entrants and expanding local firms.
“Dubai’s office market tells a different story from global trends. With supply consistently trailing demand and new buildings being leased during construction, rental rates are expected to continue rising. Despite recent increases, office rents remain below pre-global financial crisis levels. Prime rents in DIFC, for instance, are still about 50 per cent lower than in 2009,” he said.
Asteco noted that Dubai’s office sector sustained strong momentum last year, with both transaction volumes and values rising.
“Though growth seemed to slow towards the year-end, this was due to a supply shortage rather than reduced demand, forcing tenants to renew existing leases instead of taking up new spaces at higher rents,” it stated.
On Monday, Knight Frank projected Dubai’s prime office supply to reach approximately 8.2 million sqft between 2025 and 2028—an 86 per cent increase from the 4.4 million sqft delivered between 2021 and 2024.
Key developments contributing to this new supply include DIFC Square, Tecom, and Aldar’s upcoming project on Sheikh Zayed Road.
