Dubai recorded around 20,200 office rental transactions in Q3 2026, with smaller workspaces accounting for most deals as businesses continued to seek offices across the emirate.
Smaller offices drive Dubai rental activity
Office units measuring less than 1,000 sq ft accounted for 66% of rental transactions during the third quarter, according to Savills Middle East’s latest Dubai Office Market in Minutes report.
Units below 500 sq ft alone represented 40% of transactions, highlighting continued demand for smaller office spaces.
New leases made up 51% of transactions, while renewals accounted for 49%, indicating that businesses continued to enter the market alongside existing tenants maintaining their office arrangements.
Overall transaction volumes fell 8% quarter-on-quarter but remained broadly in line with activity over the previous year.
Dubai office rents remain stable
Average office rents stood at approximately Dhs 241 per sq ft in Q3 2026, although prices varied across established and emerging business districts.
DIFC, Downtown Dubai and Business Bay continued to attract businesses seeking well-connected offices close to major commercial hubs.
Demand for Grade A office space was supported by interest from international companies, including fintech firms and Chinese businesses. Occupiers increasingly prioritised location, building quality, cost efficiency and sustainability when selecting office premises.
Corporate relocations also contributed to activity, with Savills recording office requirements exceeding 30,000 sq ft during the quarter.
New office supply expected to reach 20.4 million sq ft
Dubai’s office development pipeline is expected to deliver approximately 20.4 million sq ft of gross leasable area between 2026 and 2030, with a more significant increase in supply anticipated from 2028 onwards.
Strata-owned developments are projected to account for 86% of new supply in 2028 and 78% in 2029. This could expand the availability of smaller, individually owned office units.
By 2030, the pipeline is expected to shift towards predominantly single-owned developments, potentially offering more options for larger corporate occupiers.
Quality and location remain key considerations
Toby Hall, Head of Commercial Agency at Savills Middle East, said: “Dubai’s office market continues to demonstrate resilience, with occupier demand remaining active despite a more measured pace of leasing activity during the quarter.
We’re seeing businesses take a more considered approach to their office requirements, with location, connectivity and building quality playing an increasingly important role in decision-making. Well-located Grade A buildings, particularly those offering strong transport links and modern amenities, continue to attract interest from both established occupiers and businesses looking to expand their presence in Dubai.
Looking ahead, the quality and suitability of new office supply will be important in meeting evolving occupier requirements, particularly as businesses place greater emphasis on long-term operational efficiency and workplace experience.”
Savills expects office demand to remain steady through the rest of 2026, supported by corporate relocations, regional business expansion and interest in established commercial districts.
Well-connected, high-quality and sustainability-focused buildings are expected to remain attractive to occupiers as businesses weigh location, costs and workplace requirements.
