Dubai office leasing remains resilient in Q3 2026 as tenants prioritise quality, says Savills
Dubai recorded approximately 20,200 office rental transactions in the third quarter of 2026, with demand continuing for well-located, high-quality workspaces despite a modest decline in leasing activity, according to Savills Middle East.
The latest Dubai Office Market in Minutes report found that transactions fell 8% quarter-on-quarter but remained broadly in line with levels recorded over the past year. Corporate relocations, lease renewals and demand for offices in established business districts continued to support the market.
New leases accounted for 51% of transactions during the quarter, while renewals represented 49%, indicating continued activity from businesses entering the market alongside existing tenants maintaining their office space.
Smaller offices remained the most active segment. Units below 1,000 square feet accounted for 66% of rental transactions, while spaces measuring less than 500 square feet represented 40% of activity, reflecting demand for smaller and flexible workspaces.
Average office rents remained stable at approximately AED 241 per square foot during the quarter, although rates varied across established and emerging commercial districts.
DIFC, Downtown Dubai and Business Bay attract demand
Prime commercial locations, including the Dubai International Financial Centre (DIFC), Downtown Dubai and Business Bay, continued to draw occupiers seeking accessibility, modern facilities and proximity to major business hubs.
Corporate relocations remained an important driver of activity, with Savills recording office requirements exceeding 30,000 square feet during the quarter.
Demand for Grade A offices was supported by international businesses, including fintech firms and Chinese companies. However, occupiers increasingly focused on location, building quality, cost efficiency and sustainability when evaluating their options.
Toby Hall, Head of Commercial Agency at Savills Middle East, said Dubai’s office market remained resilient despite a more measured pace of leasing activity.
He noted that businesses were taking a more considered approach to their office requirements, with connectivity, location and building quality playing a greater role in decision-making. Grade A buildings offering transport links and modern amenities continued to attract established occupiers and companies seeking to expand in Dubai.
Hall added that the quality and suitability of new office developments would be important in meeting changing requirements, particularly as businesses placed greater emphasis on operational efficiency and workplace experience.
Dubai office supply to increase through 2030
Dubai’s office development pipeline is expected to deliver approximately 20.4 million square feet of gross leasable area between 2026 and 2030, with a more significant increase in supply anticipated from 2028 onwards.
Strata-owned developments are expected to account for 86% of new supply in 2028 and 78% in 2029. This could increase the availability of smaller, individually owned office units in the market.
By 2030, the development pipeline is expected to shift towards predominantly single-owned projects, potentially providing more options for larger corporate occupiers seeking office space.
Quality expected to remain key market differentiator
Savills expects office demand in Dubai to remain steady through the remainder of 2026, supported by corporate relocations, regional business expansion and continued interest in established commercial districts.
Prime buildings with strong transport connections and sustainability features are expected to remain attractive to occupiers. Secondary properties, however, could face longer leasing periods as businesses become more selective about the offices they choose.
The report indicates that while leasing activity remains stable overall, the ability of buildings to meet occupiers’ requirements for quality, connectivity and cost efficiency will be increasingly important as new supply enters the market.
