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Dubai Office Market Shows Resilience as Rental Growth Hits a Plateau

Wed, Jul 22, 2026(90d ago)UAE

Dubai’s office sector maintained its momentum throughout the second quarter of 2026, characterized by a persistent appetite for premium Grade A spaces. While regional geopolitical concerns have caused some larger corporations to extend their decision-making timelines, the market remains robust, bolstered by a steady influx of startups and small-to-medium enterprises. According to recent data, leasing transactions saw a 4 percent increase over the previous quarter, with smaller units under 500 square feet continuing to serve as a primary engine for market activity.

After a long period of aggressive price hikes, average office rents have finally hit a plateau at Dh238 per square foot. Experts view this stabilization as a sign of a maturing, more sustainable market rather than a downturn, especially since high-quality, prime office space remains in short supply. As developers prepare to deliver new projects, much of the future inventory is already being snapped up through pre-leasing agreements. With business confidence expected to climb, the market is likely to see a surge in deferred requirements returning to the table throughout the remainder of the year.

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