Real estate consultants say the Dubai office market—which boasts one of the highest occupancy rates globally—is expected to remain undersupplied until 2027-2028.
According to Cushman & Wakefield Core, the amount of new office supply is expected to double in 2025 compared to 2024 – by 1.66 million sqft – but the market is expected to remain undersupplied until 2027-2028.
The financial free zone DIFC will add nearly one-third of the total city-wide office supply over the next three years – most of which is expected to be pre-leased due to unrelenting demand, it added.
Dubai holds the second-highest global office occupancy levels at 92 percent and it is expected to exceed 94 percent by the end of 2025, it added.
Prathyusha Gurrapu, director and head of research and consultancy at Cushman & Wakefield Core, said office rents surged by 22 per cent year-on-year in 2024, with further increases of 10-12 percent forecast for 2025. Demand has been outpacing supply, thanks to the growth of new businesses and the inflow of foreign companies into Dubai – a trade, tourism and financial hub of the region.
"We’re seeing an incredible surge in demand for office space in Dubai, with more companies entering the market and existing tenants looking to expand,” said Robert Thomas, Head of Agency at Cushman & Wakefield Core.
“While the supply pipeline is stronger this year, much of it is pre-leased or focused in specific free zones, which is adding to the pressure. Many clients are now taking a strategic approach – maximising the use of their existing spaces or exploring newer zones like Dubai CommerCity and Expo City Dubai to meet their needs,” he said.
Maintaining momentum in 2024
Real estate consultancy Savills said Dubai’s commercial real estate market maintained strong momentum in 2024, with significant growth recorded across both the office and industrial sectors.
“Dubai’s office market remained vibrant in 2024, with demand outpacing supply for premium Grade A office spaces. Key business districts such as DIFC, Business Bay, and Downtown reported near-full occupancy, with DIFC reaching 96 per cent by year-end. Emerging areas like Dubai South and Expo City gained traction due to their affordability, reduced traffic congestion, and availability of space,” said Savills.
According to the Dubai Chamber of Commerce, over 51,000 businesses became its members.
“With Grade A office spaces witnessing record-low rates in prime districts such as DIFC, and upcoming supply in emerging areas like Dubai South and Expo City, the market is adapting to meet sustained demand. The strong leasing activity driven by the Financial Services and Technology sectors underscores Dubai’s ability to cater to the requirements of international businesses while supporting sustainable development initiatives.,” said Toby Hall, head of commercial agency, Savills Middle East.