Dubai’s office rental market experienced a significant surge in the first quarter of 2025, with average rents increasing by 45% year-on-year across 22 sub-markets. This growth is driven by heightened demand from both regional and international companies, particularly in key business districts such as Dubai International Financial Centre (DIFC), Business Bay, Downtown Dubai, and TECOM. Notably, DIFC has achieved an occupancy rate of 98%, underscoring its status as a prime commercial hub.
According to Savills’ latest “Dubai Office Market in Minutes – Q1 2025” report, the city now ranks eighth globally for total prime office occupancy costs, averaging $148.9 per square foot annually. This figure encompasses base rent, fit-out expenses, and other related costs, reflecting Dubai’s growing appeal as a strategic gateway for the Middle East, Africa, and South Asia.
The demand is predominantly fueled by sectors such as financial services, consulting, technology, and media, which collectively accounted for over half of Savills’ transactions in Q1. Additionally, smaller, agile companies are increasingly active, especially in sub-markets offering value and accessibility, including Dubai South and Expo City.
The Dubai Chamber of Commerce reported the registration of 70,500 new companies in 2024, marking a 4.6% year-on-year increase. This influx of businesses is further intensifying competition for premium office spaces, leading to a tight supply of Grade A stock in established areas. Consequently, many firms are turning to serviced office operators that offer flexible, high-specification workspaces in community-centric and mixed-use locations.
Toby Hall, Head of Commercial Agency at Savills Middle East, remarked, “This growth reflects confidence in Dubai’s long-term positioning. Companies are looking at Dubai not just as a regional base, but as a global node for innovation, finance, and enterprise. The rise in rents and costs mirrors the demand for quality and the limited availability of premium space.” 
Overall, Dubai’s office market is entering a new phase characterized by elevated rental prices, reduced vacancy rates, and increasing competition for prime commercial spaces, solidifying its status as a leading global business destination.
