Q1 2026 has seen a continuation of the narrative shifting from pure rental escalation to occupier strategy and tenure management coming into focus

January and February delivered strong activity levels, followed by an expected slowing of decision making with the arrival of Ramadan, further impacted by regional unrest and seasonal factors.

Key Highlights

• AED 238 per sq ft average rents (stable q-o-q)
• 97% of office deals below 3,000 sq ft
• 2M sq ft office space to be delivered in 2026
• UAE GDP growth forecast revised to 0.3%

Market Performance

Dubai’s office market closed Q1 2026 with pricing in line with that seen at the end of 2025, marking the first time no rental uplift has been recorded since H1 2021.

Rates remain higher by 14% year-on-year, while availability continues to be tight across the city with limited churn.

Demand & Occupier Trends
The market is no longer defined solely by rental escalation, but by occupier decision making around tenure security, regulatory protection and long-term partnership with asset owners.

Smaller units continued to dominate leasing activity, with 97% of transactions for spaces below 3,000 sq ft, reflecting demand from new business entrants and expansion-focused occupiers.

At the same time, there remains sustained demand for larger office spaces, particularly in the context of renewals and acquisitions.

Supply
The market is expected to transition from a phase of uniform supply scarcity to one characterised by pockets of opportunity.

Approximately 2,000,000 sq ft of office space is expected to be delivered in 2026, with further supply scheduled for 2027, which is likely to ease pricing pressures.

Outlook
Early indicators suggest the market will stabilise, with rental growth likely to be limited and upcoming supply driving a transition towards pockets of opportunity.

Savills expects 2026 to be defined less by headline rental growth and more by strategic repositioning within selected submarkets.

For a detailed breakdown of rental trends, occupier activity and supply dynamics, download the full report.