Dubai’s office real estate sector is poised for significant growth, with an anticipated addition of 415,000 square metres of office space by the end of 2026. This expansion will elevate the city’s total office inventory to approximately 9.7 million square metres, up from the current 6.26 million, according to a report by Cavendish Maxwell.
Key Developments
- 2025: An estimated 185,000 square metres of new office space is expected to be introduced.
- 2026: A further 230,000 square metres is projected to be added.
The majority of these new developments will be classified as Grade A, reflecting a trend towards high-quality office spaces.
Market Performance
In 2024, Dubai’s office market experienced robust activity:
- Transactions: 3,150 office sales were recorded, totaling AED 6.8 billion.
- Growth: This represents a 36% increase in transaction value and a 7.1% rise in the number of transactions compared to the previous year.
Business Bay emerged as the leading area, accounting for 46% of all office transactions.
Expert Insights
Vidhi Shah, Partner and Head of Commercial Valuation at Cavendish Maxwell, noted that Dubai’s office market continues to thrive, driven by sustained corporate expansion and increased foreign investment. The city’s stable macroeconomic environment and pro-business legislation are attracting both multinational corporations and a growing number of startups and SMEs, leading to heightened competition for prime office spaces.(Arabian Business)
Rental Trends
Rental prices have seen a significant uptick:
- Sales Prices: Approximately AED 1,550 per square foot.
- Rental Rates: Around AED 145 per square foot.
This surge is attributed to high occupancy levels, creating a market that favors landlords.
