Dubai’s office market entered a more balanced phase during the second quarter of 2026, with occupier demand remaining resilient despite a more measured pace of leasing activity. According to Savills latest Dubai Office Market Report, the market continues to benefit from strong demand for high-quality office space, limited Grade A availability and Dubai’s enduring appeal as a global business hub
Dubai Land Department (DLD) data recorded 38,082 office leasing transactions during Q2 2026, a modest 4% quarter-on-quarter increase, driven primarily by new leasing activity in smaller office units. Transactions below 500 sq ft rose by 17% quarter-on-quarter and accounted for 66% of all leasing activity, reflecting sustained demand from SMEs, start-ups and new market entrants attracted by Dubai’s favourable business environment.
New lease transactions increased by 16% quarter-on-quarter to 27,121, while renewals totalled 10,961. However, Savills notes that larger occupiers adopted longer decision-making timelines during the quarter amid regional geopolitical uncertainty, with many prioritising lease renewals, selective expansions and operational flexibility over major relocations. The report suggests these requirements have largely been deferred rather than cancelled, supporting expectations for stronger activity as business confidence improves.
Demand for premium office accommodation continued to outperform the wider market. Although DLD data excludes leasing activity within DIFC, Savills reports that DIFC Square, one of the few major Grade A office completions this year, was substantially pre-leased ahead of completion and has continued to record strong leasing activity. Meanwhile, Immersive Tower, scheduled for completion in July 2027, already has a significant volume of space under offer, underlining continued occupier demand for future Grade A supply.
Office rents also demonstrated resilience during the quarter, with average market rents remaining stable at AED 238 per sq ft, marking the first quarter without rental growth since the first half of 2021. Rather than signalling a market correction, Savills believes this reflects a period of rental stabilisation, supported by limited Grade A availability and low vacancy rates across Dubai’s prime office locations.
Looking ahead, approximately 1.9 million sq ft of office space is scheduled for delivery during 2026, with the pipeline expected to increase to more than 4.2 million sq ft by 2030. However, much of the forthcoming Grade A supply is anticipated to be pre-leased or absorbed by existing occupier demand, limiting its immediate impact on market conditions and reinforcing the importance of early leasing strategies for occupiers seeking premium space.
Toby Hall, Head of Commercial Agency at Savills Middle East, said, “Following several years of exceptionally strong leasing activity and rental growth, Dubai’s office market is transitioning into a more balanced phase. While occupiers are taking more time to evaluate their options, demand for high-quality office accommodation remains resilient, particularly within the Grade A segment.
As regional business confidence improves, we expect occupier requirements that were deferred during Q2 to progressively return to the market. Combined with Dubai’s strong economic fundamentals, diversified occupier base and limited availability of prime office space, this is expected to support healthy leasing activity and sustained rental resilience through the second half of the year.”
The report notes that demand for high-quality office accommodation and flexible workspaces is expected to remain strong, particularly across the financial services, technology, trading and professional services sectors. As geopolitical uncertainty eases, existing occupiers are expected to continue driving activity through renewals and selective expansions, while new market entrants gradually return to the market.
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.
