Dubai’s Office Market Prepares for Major Supply Growth as Rents Reach AED 241 per Sq Ft
Commercial leasing remained active in Dubai during Q3 2026, while developers prepared a pipeline of 20.4 million sq ft of office accommodation scheduled for delivery by 2030.
Dubai’s commercial property sector is entering a new phase, with businesses continuing to seek office premises while a substantial amount of additional workspace is planned for the coming years. Average office rental rates stood at AED 241 per square foot during the third quarter of 2026, equivalent to approximately $66, according to Savills Middle East.
Around 20,200 office rental transactions took place during the period. Although the number of deals was 8% lower than in the previous quarter, activity remained broadly comparable with levels recorded over the preceding year.
The figures point to a market where tenants continue to secure premises but are becoming more deliberate about the size, location and quality of the space they choose.
Compact Workspaces Lead Dubai’s Office Leasing Market
A large proportion of Dubai’s office rental activity involved relatively small premises. Units covering less than 1,000 sq ft accounted for 66% of transactions, while offices measuring under 500 sq ft represented 40%.
This distribution highlights the importance of smaller office formats in the emirate’s commercial property sector. Businesses that do not require extensive floor space can focus on locations and facilities that suit their operational needs without taking on unnecessarily large premises.
New rental contracts made up 51% of transactions in Q3, with renewals accounting for the other 49%. The figures show that leasing activity came from both incoming tenants and businesses continuing their existing arrangements.
However, demand was not limited to compact offices. Savills reported requirements for premises exceeding 30,000 sq ft during the quarter, demonstrating that the market also serves companies looking for considerably larger workplaces.
Business Districts Continue to Draw Corporate Occupiers
Location remains an important consideration for companies searching for office accommodation in Dubai. DIFC, Downtown Dubai and Business Bay are among the established commercial areas attracting businesses seeking access to transport connections, commercial services and other corporate facilities.
International firms, including fintech companies and Chinese businesses, contributed to demand for higher-quality offices during the quarter.
Beyond location, companies are assessing the overall suitability of their premises. Building specifications, accessibility, running costs and environmental performance can all influence decisions about where to establish or expand operations.
Toby Hall, head of commercial agency at Savills Middle East, highlighted the growing importance of location, connectivity and building quality in the way businesses evaluate office options.
These considerations are likely to remain significant as tenants compare available properties and plan their longer-term workplace requirements.
New Development Pipeline Could Reshape Office Availability
Dubai is forecast to receive approximately 20.4 million sq ft of additional gross leasable office space between 2026 and 2030, according to Savills. The report indicates that deliveries are expected to accelerate from 2028.
Projects involving multiple individual owners are forecast to account for 86% of new office supply in 2028 and 78% in 2029. This ownership structure could contribute to the availability of more individually owned office units in the market.
The anticipated mix is expected to change by 2030, when single-owner buildings are projected to represent a greater share of the development pipeline. Such properties may offer larger occupiers more opportunities to secure space within a single building.
The scale of planned development makes future supply an important consideration for landlords, investors and businesses. The effect on individual rental markets will depend on where projects are located, the quality of the completed buildings and how closely the available space matches tenant requirements.
What the Supply Pipeline Means for Dubai’s Office Market
Dubai’s commercial property outlook will depend on how demand develops alongside the delivery of new buildings. Business relocations, company expansion and activity in established commercial districts are expected to continue supporting the need for office accommodation.
At the same time, a larger choice of premises could give tenants greater flexibility when comparing locations, floor areas and building standards. Properties offering modern facilities and convenient access to transport networks may be better positioned to attract businesses with specific workplace requirements.
Older buildings and offices with fewer amenities may face greater pressure to demonstrate value as new alternatives become available, although outcomes are likely to vary across locations and property types.
With rental rates averaging AED 241 per square foot in Q3 2026 and 20.4 million sq ft of new office space forecast through 2030, Dubai’s next stage of commercial property development will be shaped by the relationship between occupier demand, building quality and the timing of new supply.
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