Dubai office rents start to settle — but demand for big spaces is on the rise

Dubai: After two years of surging rents, Dubai’s commercial real estate market may finally be entering a more stable phase.

New data from property consultancy Savills shows that while office demand remains strong, especially for larger spaces, rents in many areas have stopped rising for the first time in months.

According to the firm’s latest Q2 2025 “Office Market in Minutes” report, 11 out of 23 Dubai submarkets recorded no rental increases over the past quarter — a sharp contrast to 2024 when office rents kept climbing quarter after quarter.

Despite this slowdown in growth, average prime office rents are still up 36% year-on-year, underscoring how much the market has already risen.

What’s new: Bigger spaces, smarter moves

One of the most noticeable trends this quarter is a jump in demand for larger offices. Nearly half (44%) of leasing enquiries in Q2 were for spaces between 10,000 and 20,000 sq ft, driven by new entrants and companies expanding their Dubai operations.

In comparison, smaller offices under 10,000 sq ft made up just 38% of demand, showing a significant shift in what businesses are looking for.

“Businesses are still committing to Dubai — but they’re thinking bigger,” said Toby Hall, Head of Commercial Agency at Savills Middle East. “Even with global economic uncertainties, the city remains a magnet for regional headquarters and expanding firms.”

What’s cooling: Rents in popular areas

While core business districts like Downtown Dubai and DIFC remain in high demand, the report suggests occupiers are becoming more cautious. Many are holding off on committing to new leases while waiting for fresh office supply to hit the market later this year.

“Rents are stabilising in some areas,” added Rachael Kennerley, Director of Research at Savills Middle East. “We’re seeing firms adopt more measured strategies — like pre-booking space in upcoming projects or exploring newer, affordable neighbourhoods.”

What's next: New locations, smarter leasing deals

Another trend gaining momentum is residential developers entering the office space market, especially through strata developments (where office floors or units can be individually owned). This is broadening the commercial property landscape beyond the traditional business zones.

At the same time, more businesses are securing rights of first refusal on extra space in their current buildings — giving them flexibility to grow without moving.

Looking ahead, areas like Dubai South and Expo City are expected to attract more interest. These locations offer larger spaces, better rents, and are now better connected by transport links, aligning with Dubai’s 2040 plan to build a more decentralised, 20-minute city.