The Dubai office market recorded AED8.2 billion in sales during the first quarter of 2026, with transaction values rising 203 percent year-on-year as demand from businesses, investors and expanding companies continued to accelerate across the emirate. New research from Cavendish Maxwell found that office transaction volumes increased by nearly 75 percent to around 1,600 deals between January and March 2026.
Dubai Office Market Reaches 15-Year Off-Plan High
One of the biggest developments in the Dubai office market was the rise of off-plan office sales. According to the report, off-plan transactions overtook ready office sales for the first time since the third quarter of 2010, marking a major shift in Dubai's commercial real estate sector.
Off-plan office sales generated AED6.4 billion during the quarter, an increase of more than 760 percent compared with the same period last year. The segment recorded approximately 950 transactions, accounting for more than 60 percent of all office sales during Q1 2026.
Dubai Office Demand Continues to Grow
Vidhi Shah said continued business formation and international corporate expansion are helping drive demand across Dubai's office market. The report highlighted strong business activity throughout the emirate, with more than 2,700 new companies registered by the Dubai Chamber of Commerce during March alone.
Meanwhile, the Dubai International Financial Centre (DIFC) attracted 775 new companies during the first quarter of 2026.
Office Prices and Rents Continue Rising
The report found that average office sales prices increased by nearly 23 percent year-on-year to AED2,029 per square foot. Average office rental rates also climbed 20 percent compared with Q1 2025, reaching AED191.9 per square foot.
The strongest rental growth was recorded in:
- DIFC: 28.2 percent - Barsha Heights: 27.1 percent - Downtown Dubai: 27 percent - Dubai Silicon Oasis: 22.2 percent - Business Bay: 21.6 percent - Jumeirah Lakes Towers: 21.1 percent
According to Cavendish Maxwell, limited availability of high-quality Grade A office space continues to support higher rental rates and property values.
Al Sufouh 1 Leads Dubai Office Transactions
Al Sufouh 1 emerged as the most active office market during the first quarter, recording 380 off-plan transactions. The top office locations by transaction volume were:
- Al Sufouh 1 – 380 transactions - Business Bay – 373 transactions - Jumeirah Lakes Towers – 223 transactions - Dubai Maritime City – 78 transactions - Trade Centre 2 – 65 transactions
Together, these areas accounted for more than 71 percent of all office transactions during the quarter. The report also noted that around 40 percent of all off-plan sales were concentrated in a single project, Shahrukhz by Danube.
New Office Supply Enters Dubai Market
Dubai added approximately 73,300 square metres of office space during Q1 2026. New supply included DIFC Square, a 55,700-square-metre Grade A office project that was completed ahead of schedule and fully leased before handover.
An additional 240,000 square metres of office space is expected to be delivered before the end of 2026. If completed as planned, Dubai's total office inventory will reach nearly 9.7 million square metres by year-end.
Dubai Office Market Outlook Remains Strong
The report forecasts office inventory rising to approximately 10 million square metres by 2027 and 10.8 million square metres by 2028. While smaller office units remain the dominant segment, demand for larger office spaces is increasing as companies expand their operations in Dubai. Offices larger than 5,000 square feet represented 7.3 percent of off-plan transactions during the quarter, compared with just 1.5 percent a year earlier.
Dubai Office Market Benefits From Business Growth
According to Cavendish Maxwell, Dubai's office market is expected to remain resilient due to the city's business-friendly regulations, tax competitiveness and infrastructure advantages. The research suggests continued demand for Grade A office space will support both rental growth and capital values, particularly in established business districts such as Downtown Dubai, Business Bay and Sheikh Zayed Road.
With strong business formation, rising corporate activity and a growing pipeline of new developments, the Dubai office market continues to show strong momentum heading into the second half of 2026.
