**OFFICE SUPPLY: RECOVERY UNDERWAY AMID LIMITED AVAILABILITY**
Supply is expected to improve
gradually from 2026 onwards, with key Q1 2026 completions including DIFC
Square in DIFC, Technohub 4 in Dubai Silicon Oasis and Atrium in Barsha
Heights. While the medium-term pipeline should ease some pressure, much
of the upcoming stock remains pre-committed, reflecting sustained
occupier demand for quality space.
**MARKET SENTIMENT: RESILIENT BUT MORE CAUTIOUS**
The Dubai office market is operating at historically high occupancy and
rental levels, supported by a strong business environment, infrastructure,
and continued government backing. Institutional landlords and developers
have not introduced price corrections, with transactions continuing across
major landlords and free zones. That said, there is a clear shift toward
tenant retention, with flexibility and occupier support becoming central to
sustaining occupancy and asset performance. Early signs include targeted
incentives from Dubai International Financial Centre, Dubai Integrated
Economic Zones Authority, and Dubai South, with others beginning to
follow. Strata landlords are also offering rent-free periods while holding
headline rents to attract tenants. Global occupiers with established UAE
operations remain committed to their existing footprint, with limited
evidence of downsizing to date. As a result, institutional landlords are
prioritising occupancy stability to preserve long-term asset performance
and investor confidence.
**PRICING: RENTS REMAIN FIRM WITH LIMITED STOCK**
Average city-wide office rents in Dubai stand at AED 211 per sqft, reflecting
a 16% YoY increase with no significant QoQ change. Headline rents remain
firm, supported by high occupancy and limited availability of Grade A
space. Prime districts such as Dubai International Financial Centre, One
Central and Downtown Dubai continue to command premium pricing.
While space utilisation has softened slightly in recent weeks following the
onset of the conflict, occupancy levels remain stable, with no notable
relocations or downsizing observed. While still early, some sub-leasing
availability may emerge should the uncertainty persist