OFFICE SUPPLY: LIMITED IN 2025, WAVE OF NEW STOCK FROM 2027
As of YTD 2025, approximately 770,000 sqft of new office space has been delivered, including 411,000 sqft in Q3 from two buildings in Dubai CommerCity which saw steady pre-leasing and the office component of Wasl Tower. No further completions are expected in Q4, and supply tightness is likely to persist until 2027 as new deliveries remain limited. However, the pipeline is strengthening, with major completions planned for 2028 and 2029 expected to ease current supply crunch in certain areas. Approximately 72% of upcoming stock is Grade A, and 66% is institutionally owned, reflecting a shift towards higher-quality, professionally managed assets. Nearly 56% of supply is within free zones, 36% onshore, and 12% under dual licensing, highlighting Dubai’s focus on flexible, occupier-friendly environments. Future supply is concentrated in key districts such as DIFC, Sheikh Zayed Road, JLT, and Business Bay, with an emphasis on ESG-compliant, globally benchmarked offices. Several Grade A free zone projects are already achieving strong pre-leasing momentum, supported by sustained demand from multinational occupiers. With prime stock operating near full occupancy, upcoming completions are well-positioned to support corporate expansion and regional headquarters consolidation, while maintaining healthy absorption of new supply.
DEMAND: RECORD-HIGH OCCUPANCY, LED BY GRADE A ASSETS
Office occupancy across Dubai remains consistently strong, with Grade A assets leading at 95.5%. Grade B and C properties follow closely, averaging around 91%, resulting in a citywide occupancy rate of approximately 92.4%. Prime districts such as DIFC, Downtown Dubai, Sheikh Zayed Road, Dubai Design District (D3), and One Central continue to record the highest levels of tenant retention and sustained leasing activity.
PRICING: RENTS CONTINUE UPWARDS WITH LIMITED STOCK
Average office rents in Dubai have climbed to AED 197 per sqft, a 19% YoY increase. DIFC maintains the highest rental levels, followed by One Central and Downtown Dubai. Persistently low vacancy rates have reinforced landlord confidence, driving continued rental growth and establishing a premium for well-located, high-spec office space.
