Dubai’s office rental market is experiencing a significant surge, driven by a combination of tight supply and robust demand from both new and expanding businesses. In 2024, office rents increased by 22% year-on-year, with projections indicating a further rise of 10-12% in 2025. Occupancy rates are notably high, with city-wide levels at 92% and prime areas like the Dubai International Financial Centre (DIFC) reaching 96%. This heightened demand is fueled by the influx of foreign companies and the growth of new businesses, positioning Dubai as a leading hub for trade, tourism, and finance.
The supply of new office spaces is struggling to keep pace with demand, leading to a projected shortage that may persist until 2027-2028. Although new developments are underway, much of the upcoming supply is already pre-leased, particularly in free zones such as DIFC, Dubai CommerCity, and Expo City Dubai. This scenario is prompting businesses to explore alternative strategies, including maximizing the use of existing spaces and considering emerging areas like Dubai South and Expo City for expansion. The sustained demand underscores the need for strategic planning in Dubai’s commercial real estate sector to accommodate the city’s dynamic economic growth.
