Dubai’s office leasing market showed resilience in the third quarter of 2026, with approximately 20,200 rental transactions recorded, according to the latest report from Savills Middle East. Although this marks an 8% decline in transaction volume compared to the previous quarter, the overall activity remains consistent with the past year, driven by corporate relocations and a steady demand for high-quality office spaces.
New leases constituted 51% of transactions during this period, while lease renewals accounted for 49%. This balance indicates ongoing occupier activity alongside a stable base of existing tenants. The report highlights a notable preference for smaller office units, with spaces under 1,000 sq ft making up 66% of all rental transactions. Specifically, offices measuring less than 500 sq ft represented 40% of the activity, reflecting a sustained demand for flexible workspaces.
Prime Locations Attracting Interest
Average market rents remained stable at approximately AED241 per sq ft in Q3 2026, although significant variations exist across Dubai’s established and emerging business districts. Prime areas such as the Dubai International Financial Centre (DIFC), Downtown Dubai, and Business Bay continue to draw interest from businesses seeking quality office accommodation and accessibility to key commercial hubs.
Corporate relocations have been a significant driver of leasing activity, with Savills noting requirements exceeding 30,000 sq ft during the quarter. This trend underscores the ongoing evolution of Dubai’s office market, where businesses are increasingly selective about their office space choices.
International Demand for Grade A Spaces
Demand for Grade A office spaces remains robust, particularly from international businesses, including fintech firms and companies from China. Occupiers are becoming more discerning, emphasizing location, building quality, cost efficiency, and sustainability credentials in their decision-making processes. Toby Hall, Head of Commercial Agency at Savills Middle East, remarked, “Dubai’s office market continues to demonstrate resilience, with occupier demand remaining active despite a more measured pace of leasing activity during the quarter.”
Hall noted that well-located Grade A buildings, especially those with strong transport links and modern amenities, are particularly appealing to both established occupiers and businesses looking to expand in Dubai. The quality and suitability of new office supply will be crucial in meeting evolving occupier requirements, especially as businesses focus on long-term operational efficiency and workplace experience.
Future Development Pipeline
Looking ahead, Dubai’s office development pipeline is projected to deliver approximately 20.4 million sq ft of gross leasable area between 2026 and 2030, with a significant increase in supply expected from 2028 onwards. Strata-owned developments are anticipated to account for 86% of new supply in 2028 and 78% in 2029, potentially increasing the availability of smaller, individually owned office units. However, the market is expected to shift towards predominantly single-owned developments by 2030, which could provide additional options for larger corporate occupiers.
Savills forecasts that Dubai’s office market will maintain steady occupier demand throughout the remainder of 2026, bolstered by corporate relocations, regional business expansion, and sustained interest in established commercial locations. Prime, well-connected, and sustainability-focused buildings are expected to remain particularly attractive, while secondary assets may face longer leasing periods as occupiers become increasingly selective.
For further insights into the regional real estate landscape, visit Economy Middle East.
