Dubai office boom shifts decisively off-plan

Dubai’s off-plan office market surged to a record AED13.1 billion in the first half of 2026, surpassing the combined value of transactions recorded across the previous seven years and signalling a decisive shift in the emirate’s commercial property cycle.

Developers sold 1,668 off-plan office units between January and June, compared with AED5.48 billion generated from 1,821 transactions between 2019 and 2025. The jump reflects a sharp acceleration in demand for high-quality commercial space as companies expand their regional operations and investors move early into projects expected to meet a shortage of Grade A supply.

The performance marks a turning point for a market that had traditionally been dominated by completed office sales and leasing deals. Off-plan office transactions have gained momentum as occupiers confront limited availability in established business districts, rising rents and tighter vacancy levels in prime towers. For developers, the shift has opened a deeper commercial pipeline at a time when residential off-plan launches have already reshaped Dubai’s broader property market.

Business Bay led the first-half activity, generating AED6.8 billion in off-plan office sales across 476 transactions. The district accounted for about 52 per cent of total sales value and 28.5 per cent of the number of deals, reinforcing its position as a major commercial hub for companies seeking proximity to Downtown Dubai, Sheikh Zayed Road and the Dubai Canal corridor.

Trade Centre Second ranked next with AED1.7 billion from 76 transactions, supported by its location near the Dubai International Financial Centre and the World Trade Centre area. TECOM Site A recorded AED1.4 billion across 498 transactions, while Dubai Maritime City crossed AED1 billion from 87 deals, showing that demand is extending beyond the traditional central business districts.

Premium assets captured a large share of capital. A total of 212 transactions exceeded AED20 million each during the first half. Offices priced between AED20 million and AED50 million accounted for AED6.11 billion across 201 transactions, while 11 deals above AED50 million added AED629.9 million. The figures show that demand is not confined to small investors seeking rental yields, but includes larger buyers positioning for long-term income and capital growth.

The surge follows a strong first quarter, when Dubai’s office market recorded about 1,600 transactions and AED8.2 billion in sales. Off-plan offices accounted for more than 60 per cent of office sales activity during the quarter, overtaking ready office transactions for the first time since 2010. That shift has been driven by a combination of business formation, regional headquarters demand and limited stock in the best-located buildings.

Average office rents have continued to rise across major districts, although growth has become more measured in some segments after several years of steep increases. Market data for the first quarter showed average rents around AED238 per square foot, broadly stable quarter on quarter but still higher than a year earlier. The pause suggests occupiers are becoming more selective, particularly as geopolitical uncertainty and cost discipline shape corporate decisions.

Supply remains the central issue. Dubai has a sizeable office pipeline planned between 2026 and 2030, with millions of square feet expected across key districts. Yet construction timelines, fit-out requirements and demand for specific locations mean the immediate shortage of fitted, high-grade space is unlikely to ease quickly. Companies seeking contiguous floors in prime buildings continue to face limited options, giving developers room to price future projects more aggressively.

The occupier base is also changing. Financial firms, asset managers, technology companies, family offices and professional services groups have expanded across the emirate, supported by business-friendly regulation, residency reforms and Dubai’s role as a regional decision-making centre. DIFC, Downtown Dubai, Business Bay, Jumeirah Lakes Towers and TECOM-linked districts have benefited from this movement, while newer commercial clusters are being positioned to absorb future growth.

Investor appetite is being helped by the income profile of offices. Commercial units in well-managed buildings can offer relatively stable yields when leased to corporate tenants, particularly where service standards, parking, transport access and building specifications meet institutional requirements. Buyers are also betting that office rents will remain resilient as long as job creation and business registrations continue to support demand.

The market is not without risks. Off-plan commercial property depends on timely delivery, construction quality, developer credibility and sustained occupier demand at handover. Buyers also face exposure to market cycles if a large volume of supply is completed at the same time. Rising fit-out costs, service charges and financing conditions could affect returns, especially for investors who entered at peak prices.