Sustained tenant demand amid minimal new supply continues to define office market dynamics in Dubai, reveals Savills latest Q3 2025 update on the sector. While select submarkets have displayed some stability in rental growth, the overall market continues to trend upwards, supported by a strong non-oil economy, growing business formation, and investor confidence.
The average office rents tracked by Savills across multiple submarkets were recorded at AED 233 per sqft in Q3 2025, with a 4.5 % q‑o‑q increase from Q2 2025 (AED 223 per sq ft) and 35% increase y‑o‑y from Q3 2024 (AED 173 per sq ft).
Notably Old Dubai locations averaged growth of over 10%. Meanwhile, key business districts including Business Bay, Downtown Dubai and Sheikh Zayed Road registered marginal gains, reflecting continued demand for quality, centrally located office spaces.
Rachael Kennerley, Director – Research at Savills Middle East said, “Despite the quarter stretching over the traditionally quiet summer months, tenant activity remained strong, bucking the seasonal trend. Dubai’s population also surpassed the 4 million mark during this period, reinforcing its position as a key regional business and talent hub.”
During the quarter, the technology and media sector accounted for the largest share of transactions, followed by pharmaceuticals, each accounting for a 29% share. Consulting and energy-related firms followed, highlighting the varied industries across which occupier interest was spread. In terms of size, demand was largely concentrated in smaller office segments, with nearly 65% of enquiries for spaces below 5,000 sq ft.
On the supply front, prime office supply remains limited and many upcoming developments are already pre-leased. Around 1 million square feet of new office space is expected to be completed by early 2026, much of which is already pre-leased, showing strong demand for high-quality offices. Notably, multiple traditional residential developers have begun pursuing strata-titled office models, prioritising income-generating assets.
“Dubai’s office market is therefore expected to maintain its strong pricing fundamentals through the remainder of 2025, amid robust demand from existing occupiers and new entrants. The evolution of the strata office sector, combined with new Grade A completions in 2026, will eventually provide a greater pool of options and alleviate short-term supply constraints,” Kennerley concluded.
For further insights and detailed analysis, download the full Dubai Office Market in Minutes Q3 2025 report here.