MARKETBEAT- Office Q4 2025, Dubai, UAE

**OFFICE SUPPLY: SUPPLY RECOVERY AMID STRUCTURAL SHORTAGE** Dubai’s office market has experienced a prolonged period of muted new supply, with annual completions remaining under 1.0 million sqft per annum over the last four years, reflecting delayed handovers and limited speculative single-owned institutional-grade stock. Looking ahead, completions are expected to trend higher from 2026 onwards, increasing modestly in the near term before rising more materially towards the latter part of the decade. Notable completions in 2026 include DIFC Square in DIFC and Sweid One in JLT, both of which have seen strong precommitments, underscoring demand for high-quality space. Forecast deliveries are estimated at 2.27 million sqft in 2026 and 1.47 million sqft in 2027, followed by a more pronounced increase from 2028 onwards. The uplift in supply is expected to address the prolonged supply crunch, particularly against the backdrop of around 17 million sqft absorbed over the past five years. Approximately two-thirds of the upcoming pipeline is single-owned, supporting occupier preference for professional asset management, ESG standards, and long-term lease certainty. **DEMAND: FLEX SPACE IS NOW MAINSTREAM** Flexible workspace has evolved from a supplementary offering into a core component of the office market, increasingly embedded within new developments and occupier leasing strategies. Demand has accelerated in recent years, driven by both expanding operator networks and rising occupier adoption, with leading global, regional, and local flex operators scaling rapidly across the UAE. Many flex workspace operators in central locations are launching with strong preleasing and reaching near-full occupancy at record pace. **PRICING: RENTS CONTINUE UPWARD WITH LIMITED STOCK** Average office rents in Dubai have climbed to AED 211 per sqft, a 21% YoY increase. DIFC continues to command the highest rents in the market, followed by One Central and Downtown Dubai. Overall, the market continues to exhibit a clear flight-to-quality dynamic, with rental performance increasingly differentiated by asset quality, ownership structure, and operational efficiency rather than location alone.