The significant increase in luxury transactions reflects strong confidence in Dubai's long-term economic and real estate foundations, which remain largely in place. Despite rising costs, the market has seen expansion in corporate activity and an increase in occupied space, with a clear willingness to pay premium prices for high-quality, operationally efficient offices. Location factors also played a crucial role, with proximity to vital infrastructure like metro networks, and the availability of hospitality and restaurant services, enhancing the appeal and value of office assets. As flexible work models become entrenched in Dubai, companies are beginning to view their offices as a 'talent showcase' that reflects their corporate identity and supports attracting skilled talent—a trend likely to continue in the coming years. Adam Win, Partner and Head of Commercial Agency at UAE, said: 'Offices were operating at or near maximum capacity, with very low vacancy levels. Available data indicates that most international tenants remain committed to their lease agreements and presence in the region'. Demand driven by the financial and tech sectors, The 'Banking and Financial Services' and 'Technology' sectors drove demand for office rents in Dubai by 32.5% and 23.1% respectively, together accounting for over half of the total demand for new office space in the second half of 2025. This demand showed a clear preference for Grade A offices in prime locations, reinforcing the shift towards higher quality and more efficient spaces. In this regard, Durani added: 'The diversity of demand sources is driving the shift towards high-quality, efficiently designed spaces, which supports talent attraction, enhances the customer experience, and adopts modern work strategies'. New supply, According to Knight Frank, approximately 24.2 million square feet of new office space is expected to enter the market between 2026 and 2030, and this supply is likely to bring greater market balance in the medium term. The bulk of the new supply is concentrated in key high-demand areas, led by the Dubai International Financial Centre (DIFC), with development plans totaling 7.7 million square feet until 2040, reinforcing its position as a leading regional financial hub. This supply is largely geared towards leasing, catering to the needs of financial and professional companies and reflecting a long-term investment strategy by developers and owners based on income. Key areas driving expansion, Key areas expected to see significant supply until 2030 include: * Dubai Creek Harbour (4.6 million sq ft) * Dubai Media City (3.8 million sq ft) * Dubai International Financial Centre (3.4 million sq ft) * Jumeirah Lake Towers (2.6 million sq ft). These four areas collectively account for the largest share of future supply, ensuring the availability of modern, high-quality office space in the most attractive locations for companies and investors. Dubai Creek Harbour is particularly notable, as all projects under construction are designated for sale, offering direct investment opportunities in the office market, leveraging its strategic location and proximity to central Dubai, complementing the dominant leasing model in DIFC. 167 transactions exceeding AED 10 million, The average selling price of offices in Dubai rose by 29% year-on-year to AED 5,130 per square foot in 2025, up from AED 3,986 recorded at the end of 2024, driven by investor appetite for premium real estate assets with stable returns. According to a recent report by global real estate consultancy Knight Frank, this rapid increase in property value is boosted by a significant rise in high-value office sales, with 167 transactions exceeding AED 10 million in 2025, a 114% increase year-on-year, highlighting the depth of investment liquidity targeting income-generating assets in the emirate. Faisal Durani, Partner and Head of MENA Research at Knight Frank, said: 'Amid regional tensions, Dubai's office market has cemented its position as one of the most dynamic and flexible markets in the region, with increasing investor focus on assets in strategic locations with stable returns. As demand continues to outpace supply, capital values and rents have seen continuous growth on a quarterly and yearly basis since 2020'.
