Dubai’s office market posted AED8.2 billion in sales during the first quarter of 2026, a 203 per cent increase on the same period last year and 73 per cent above Q4 2025, according to a market analysis published by real estate advisory firm Cavendish Maxwell on 4 June 2026.
Total transactions reached 1,600 between January and March, up nearly 75 per cent year-on-year, with off-plan activity accounting for more than 60 per cent of volume. Off-plan sales values reached AED6.4 billion, a rise of more than 760 per cent compared to Q1 2025, with around 950 purchases completed in the quarter. It marked the first time off-plan activity has overtaken ready transactions since Q3 2010.
January and February carried most of the weight, accounting for 83 per cent of sales volumes and 81 per cent of total values. March slowed, with transactions down 13.4 per cent year-on-year, though Cavendish Maxwell cautioned against reading too much into the dip.
Vidhi Shah, Director and Head of Commercial Valuation at Cavendish Maxwell, said the March figures likely reflect deals agreed before and during the early stages of regional conflict, with Ramadan, Eid Al Fitr, and typical registration lag also weighing on the numbers. “The next few months will provide a clearer view of demand,” she said.
“Looking ahead, Dubai’s office market is expected to remain resilient, as demand fundamentals remain in place thanks to the city’s regulatory environment, tax competitiveness and quality of infrastructure. While the pace of sales and leasing activity could become more measured in the near term, Government policy is expected to provide meaningful support to the market. The AED1 billion support package announced earlier in the year, combined with Dubai’s established track record of proactive policy intervention gives an important buffer against downside risks,” she added.
Business formation remained active through the quarter. The Dubai Chamber of Commerce registered more than 2,700 new companies in March alone, and DIFC attracted 775 new firms in Q1, with March its strongest month at 258 registrations, up nearly 60 per cent year-on-year.
Sales prices rose nearly 23 per cent year-on-year to AED2,029 per square foot. Average rental rates reached AED191.9 per square foot, up 20% on Q1 last year. The steepest rent increases were recorded in DIFC (28.2 per cent), Barsha Heights (27.1 per cent) and Downtown Dubai (27%), with landlords continuing to hold asking prices given limited Grade A supply in established districts.
Al Sufouh 1 led transaction activity with 380 off-plan sales, followed by Business Bay (373), Jumeirah Lakes Towers (223), Dubai Maritime City (78) and Trade Center 2 (65). Those five locations accounted for 71.5 per cent of all Q1 transactions.
Around 73,300 square metres of new office space was delivered in Q1, including DIFC Square, a 55,700 sq metre Grade A development completed ahead of schedule and fully leased before handover. A further 240,000 sq metres is expected for the remainder of the year, which would bring Dubai’s total office stock to nearly 9.7 million sq metres by December 2026. The city’s inventory is projected to reach 10 million sq metres by 2027 and 10.8 million sq metres by 2028, though only 23.6 per cent of the expected 2026 supply has been delivered so far.
Small to mid-sized units below 2,001 sq ft dominated activity, making up 74.4 per cent of off-plan transactions and over 88 per cent of ready sales. Larger offices are gaining ground, though: units above 5,000 sq ft accounted for 7.3 per cent of off-plan sales, up from 1.5 per cent in Q1 2025.
