Dubai office market posts record AED19.5bn in H1 2026 as rents surge and off‑plan sales spike
Dubai office market posts record H1 2026 sales of AED19.5bn as rents rise and off‑plan deals surge, reshaping supply amid robust institutional demand.
Dubai’s office market has entered a new growth phase, with sales reaching AED19.5 billion in the first half of 2026 and rents rising sharply across major business districts. The surge — a 183% year‑on‑year increase that surpassed total sales for 2025 — was led by a record performance in off‑plan office transactions and strong institutional leasing demand. Market players and valuation specialists say limited high‑quality stock and sustained corporate relocations are fuelling the rebound.
Record H1 sales and off‑plan dominance
The commercial property market reported AED19.5 billion in transactions in H1 2026, marking a dramatic acceleration from the prior year. Off‑plan office deals accounted for AED13.1 billion of that total, an unprecedented level that industry sources said equals several years of typical office sales combined.
Analysts attribute the spike to large institutional buyers and international firms seeking regional hubs, as well as to developers securing forward sales through pre‑let arrangements. The scale of off‑plan activity is altering the immediate availability of completed offices in the city and compressing near‑term supply.
Rents climb as demand outpaces supply
Average annual office rents in Dubai rose by about 5.3% year‑on‑year, market valuation specialists reported, with headline rents roughly doubling since 2022 to near AED200 per square foot annually. Some central business locations saw even higher effective rates during the first half of 2026, reflecting tight vacancy in prime assets.
In premier precincts, prices remain at a premium: average asking prices reached about AED4,924 per square foot in Downtown Dubai and roughly AED4,200 per square foot in the Dubai International Financial Centre. Those figures represent a multi‑year rebound, including a roughly 240% increase versus COVID‑era lows in some pockets.
Institutional and international tenants driving growth
Demand is being led by multinational corporations, financial services groups and technology firms that are expanding regional operations in Dubai. Property executives said these tenants value modern, energy‑efficient buildings and proximity to established business ecosystems when choosing office locations.
The city’s positioning as a regional headquarters hub, combined with a rising number of commercial licences and a growing population, has supported sustained leasing interest. As a result, landlords of quality assets are maintaining high occupancy rates and achieving upward pressure on headline and effective rents.
Off‑plan pipeline reshapes market availability
A significant share of new and upcoming office stock has been absorbed before practical completion, industry research shows, reducing the pool of immediately available Grade A space. Developers have reported substantial pre‑leasing and sales commitments on projects still under construction, limiting the supply that would otherwise ease rental inflation.
Market participants expect roughly two million square feet of new office space to enter the market over the near term, but much of that is already earmarked through forward commitments. That dynamic is pushing some occupiers to consider purchase options as a hedge against future rent increases.
Shift from leasing to ownership among occupiers
Rising rents over recent years have prompted a number of occupiers to reassess long‑term occupancy strategies, with many electing to buy rather than lease office premises. That shift is driven by a desire to stabilise occupancy costs, secure long‑term cash‑flow predictability and control fit‑out and operations.
Advisers note that ownership decisions are particularly pronounced among mid‑to‑large regional firms that expect continued growth and want to lock in strategic locations. The trend has further reinforced off‑plan sales volumes and altered the investor profile in the office sector.
Retail outlook and broader market resilience
Retail rents are also expected to strengthen, with analysts forecasting an increase of between 7% and 10% during the current year as consumer demand and tourism flows firm up. The cross‑sectoral uplift reflects a wider confidence in Dubai’s economic fundamentals that supports both workplace and retail real estate returns.
Industry leaders underscore that regional geopolitical tensions have influenced some expansion timetables but have not derailed investor interest or the city’s appeal as a business destination. They point to diversified demand sources and long‑term capital commitment as factors underpinning market resilience.
Looking ahead, the Dubai office market is poised for a sustained recovery phase as new and existing demand converges on a limited supply of high‑quality office stock. While the pace of rent growth and the timing of fresh completions will determine short‑term dynamics, long‑term fundamentals — population growth, corporate relocations and steady investor appetite — suggest the sector will remain a central pillar of the emirate’s commercial property landscape.