Dubai and Abu Dhabi ended the final quarter of 2025 with continued growth in office rents, supported by steady occupier demand and limited Grade A supply, according to Savills’ latest Dubai and Abu Dhabi Office Market in Minutes, Q4 2025 report.
The findings point to a clear shift towards smaller and more flexible office spaces, as companies focus on cost control, efficiency and long-term security.
Dubai office rents
In Dubai, average office rents rose to about Dhs 225 per sq ft, marking a 32.4 per cent increase year on year. Commercial property transactions reached Dhs 12.4 billion in December 2025 alone.
Demand remained concentrated in smaller units, with 63 per cent of enquiries for spaces under 5,000 sq ft. Savills noted that occupiers are increasingly choosing right-sized offices that allow flexibility and lower operating costs.
Tenant preferences
Tenant decision-making has become more cautious, with greater focus on tenure security and operational efficiency. This trend has been supported by RERA renewal protections and stable economic conditions.
The Central Bank of the UAE expects GDP growth of 5.2 per cent in 2026. At the same time, more than 53,000 new companies joined the Dubai Chamber of Commerce during the first nine months of 2025, reinforcing demand for office space.
Key submarkets
Rental performance across Dubai varied by location. DIFC remained the most expensive office market, with rents at around Dhs 537 per sq ft. Business Bay and JLT recorded some of the strongest annual growth, while Expo City emerged as a growing office destination in the fourth quarter, supported by its campus-style layout and focus on sustainability.
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 market
In Abu Dhabi, the Grade A office market remained landlord-favourable. Average rents increased to about Dhs 2,375 per sq metre per year, or roughly Dhs 221 per sq ft, reflecting a 22 per cent annual rise. Demand was driven mainly by financial services, IT and engineering firms.
Prime CBD rents reached around Dhs 2,750 per sq metre, or about Dhs 256 per sq ft, up 26 per cent year on year. Savills reported growing interest in micro-offices and flexible layouts, as companies prioritise ready-to-occupy, high-quality space.
Harry Ransom, Head of Commercial, Abu Dhabi at Savills Middle East, said: “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.”
Outlook for 2026
Looking ahead, Savills expects both Dubai and Abu Dhabi to become more selective markets as new supply comes online. Prime office assets in established locations are forecast to remain in demand, supported by ongoing business formation and continued regional investment.
