Dubai Office Sales Surge 203% To AED8.2 Billion In Q1 2026

Dubai's office market recorded a strong start to 2026, with total office sales reaching AED8.2 billion ($2.2 billion) during the first quarter. According to a report by Cavendish Maxwell, transaction values increased by 203% year-on-year, while transaction volumes rose nearly 75% to approximately 1,600 transactions between January and March.

The quarter marked a significant shift in Dubai's commercial real estate sector as off-plan office sales surpassed ready office transactions for the first time since Q3 2010. This reflects growing confidence among investors and businesses in future office developments across the emirate.

Off-Plan Segment Dominates Market Activity

Off-plan office sales generated AED6.4 billion ($1.74 billion) during the quarter. This represented growth of more than 760% compared with Q1 2025 and an increase of over 165% from the previous quarter.

The segment recorded around 950 transactions, nearly five times higher than a year earlier and 27% above Q4 2025 levels. Off-plan offices accounted for more than 60% of all office sales transactions.

January and February were the busiest months, contributing 83% of total transaction volumes and 81% of overall sales value recorded during the quarter.

Business Growth Continues To Support Demand

Demand for office space remains closely linked to Dubai's expanding business environment. The Dubai Chamber of Commerce registered more than 2,700 new companies in March 2026 alone, while DIFC attracted 775 new companies during the first quarter.

March was the strongest month for DIFC registrations, with 258 new companies, representing growth of nearly 60% year-on-year.

Office Prices And Rents Continue Rising

Average office sale prices increased by nearly 23% year-on-year to AED2,029 per square foot. Rental rates also climbed 20%, reaching an average of AED191.9 per square foot.

The strongest rental growth was recorded in DIFC (28.2%), Barsha Heights (27.1%), Downtown Dubai (27%), Dubai Silicon Oasis (22.2%), Business Bay (21.6%), and Jumeirah Lakes Towers (21.1%).

Al Sufouh 1 Leads Transactions While Supply Expands

Al Sufouh 1 emerged as the most active office market with 380 transactions, followed by Business Bay (373) and Jumeirah Lakes Towers (223). Together, the top five office locations accounted for 71.5% of all office transactions during the quarter.

Approximately 73,300 square metres of office space was delivered during Q1, including DIFC Square, a 55,700-square-metre Grade A development that was fully leased before handover. Another 240,000 square metres is expected to be completed during the remainder of 2026, taking Dubai's total office inventory close to 9.7 million square metres by year-end.

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