Dubai and Abu Dhabi closed Q4 2025 with continued rental growth and resilient occupier demand, supported by limited Grade A supply, economic diversification and a growing preference for smaller, flexible office space, according to Savills latest Dubai and Abu Dhabi Office Market in Minutes, Q4 2025.
Dubai:
In Dubai, average office rents reached approximately AED 225 per sq ft, reflecting a 32.4% year-on-year increase, while commercial property transactions totalled AED 12.4 billion in December 2025 alone. Demand remains concentrated in smaller units, with 63% of enquiries below 5,000 sq ft, highlighting occupiers preference for agile, right-sized workplaces.
Tenant decision-making has become increasingly pragmatic, with greater emphasis on tenure security and operational efficiency, supported by RERA renewal protections and a positive macroeconomic backdrop. The Central Bank of the UAE forecasts 5.2% GDP growth in 2026, while more than 53,000 new companies joined Dubai Chamber of Commerce during the first nine months of 2025, reinforcing underlying office demand.
Rental performance varied across Dubai’s key submarkets, with DIFC maintaining the highest pricing at approximately AED 537 per sq ft, while Business Bay and JLT recorded some of the strongest annual growth. Expo City also emerged as a growing office destination in Q4, supported by its campus-style environment and sustainability-led proposition.
Toby Hall, Head of Commercial Agency at Savills Middle East, said,
“Dubai continues to demonstrate strong fundamentals, with occupiers becoming more strategic in how they approach space. While demand remains robust for Grade A offices, we’re seeing a clear shift towards smaller, more flexible layouts, alongside increased demand for flexibility, resilience, and future-proofed workplace strategies. As we head into 2026, prime locations with high-quality stock are expected to remain well supported, underpinned by ongoing business formation and regional investment activity.”
Abu Dhabi:
In Abu Dhabi, the Grade A office market remained landlord-favourable, with average rents rising to approximately AED 2,375 per sqm per annum (around AED 221 per sq ft), representing a 22% year-on-year increase, driven by strong demand from financial services, IT and engineering occupiers. Prime CBD rents reached around AED 2,750 per sqm (approximately AED 256 per sq ft), up 26% annually, while demand for micro-offices and flexible layouts continues to grow as occupiers prioritise high-quality, ready-to-occupy space.
Harry Ransom, Head of Commercial, Abu Dhabi at Savills Middle East, added,
“Abu Dhabi’s office market continues to benefit from limited Grade A supply and sustained occupier interest, particularly within core business districts. We’re seeing growing demand for high-quality, ready-to-occupy space as companies enter the market more cautiously, favouring flexible layouts and smaller footprints. With a measured supply pipeline ahead, prime assets are expected to remain well supported through 2026.”
Looking ahead to 2026, Savills expects both markets to shift towards more selective opportunities as new supply comes online. Prime assets in established locations are expected to remain well supported, underpinned by continued business formation and sustained regional investment activity.
About Savills Middle East:
Savills plc is a global real estate services provider listed on the London Stock Exchange. With a presence in the Middle East for over 40 years, Savills offers an extensive range of specialist advisory, management and transactional services across the United Arab Emirates, Oman, Bahrain, Egypt, and Saudi Arabia. Expertise includes property management, residential and commercial agency services, property and business assets valuation, and investment and development advisory. Originally founded in the UK in 1855, Savills has an international network of over 700 offices and associates employing over 40,000 people across the Americas, UK, Europe, Asia Pacific, Africa, and the Middle East.
