Looking ahead to 2026, Savills expects both Dubai and Abu Dhabi to move toward more selective opportunities as new supply enters the market
Dubai and Abu Dhabi ended Q4 2025 with sustained rental growth and resilient occupier demand, underpinned by limited Grade A supply, ongoing economic diversification and a clear shift toward smaller, more flexible office formats, according to Savills’ Dubai and Abu Dhabi Office Market in Minutes, Q4 2025.
In Dubai, average office rents climbed to around Dhs225 per sq ft, marking a 32.4 per cent year-on-year increase. Commercial property transactions reached Dhs12.4bn in December 2025 alone, reflecting continued confidence in the market.
Demand remains firmly skewed towards smaller office units, with 63 per cent of enquiries focused on spaces below 5,000 sq ft, highlighting occupiers’ preference for agile and right-sized workplaces.
Tenant decision-making has become increasingly pragmatic, with greater emphasis on tenure security and operational efficiency. This has been supported by RERA renewal protections and a positive macroeconomic backdrop. The Central Bank of the UAE is forecasting GDP growth of 5.2 per cent in 2026, while more than 53,000 new companies joined the Dubai Chamber of Commerce during the first nine months of 2025, reinforcing underlying demand for office space.
Rental performance varied across key submarkets. DIFC continued to command the highest rents at approximately Dhs537 per sq ft, while Business Bay and JLT recorded some of the strongest annual growth. Expo City also gained traction as an emerging office destination during Q4, supported by its campus-style layout and sustainability-led positioning.
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.”
In Abu Dhabi, the Grade A office market remained landlord-favourable, with average rents rising to approximately Dhs2,375 per sq m per annum (around Dhs221 per sq ft), representing a 22 per cent year-on-year increase. Growth was driven by sustained demand from financial services, IT and engineering occupiers.
Prime CBD rents increased to around Dhs2,750 per sq m (approximately Dhs256 per sq ft), up 26 per cent annually. Demand for micro-offices and flexible layouts also continued to strengthen, as occupiers prioritised high-quality, ready-to-occupy space.
Harry Ransom, Head of Commercial, Abu Dhabi at Savills Middle East, added: “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.”
Looking ahead to 2026, Savills expects both Dubai and Abu Dhabi to move toward more selective opportunities as new supply enters the market. Prime assets in established locations are forecast to remain well supported, driven by continued business formation and sustained regional investment activity.
The links to the reports are here: Dubai Office Market Report – Q4 2025 and Abu Dhabi Office Market Report – Q4 2025
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