Dubai’s office market recorded Dh15.8 billion worth of sales in the first half of 2026, a year-on-year jump of almost 200 per cent and double the total sales value of the second half of 2025, according to property consultancy Cavendish Maxwell.
Transactions between January and June climbed more than 38 per cent year-on-year to 2,600, with off-plan deals accounting for 65 per cent. High-value transactions hit record levels, with more than 220 purchases above Dh20 million – up sharply from just 20 across both halves of last year. Some 95 per cent of these Dh20 million-plus deals were off-plan.
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Off-plan buyers paid an average of Dh8.3 million per office in H1 2026, up 133 per cent from Dh3.5 million a year earlier. Ready office prices rose nearly 14 per cent to Dh3 million, from Dh2.6 million.
Momentum softens in Q2
Despite strong H1 growth, momentum eased in the second quarter, with transactions down almost 36 per cent from Q1 and a slight moderation in prices and rents. The slowdown mainly hit the ready segment, reflecting seasonal factors and regional uncertainty.
“Year-on-year indicators remained positive in H1 2026, but quarterly trends suggest a moderation in office market momentum. While the structural foundations of Dubai’s office real estate sector – including a diversified economy, strategic location and pro-business regulatory environment – remain very much intact, the market has entered H2 in a more uncertain environment,” said Vidhi Shah, director and head of commercial valuation at Cavendish Maxwell.
“Performance in the coming months will increasingly depend on the geopolitical situation, the pace of future supply and the depth of occupier demand. If regional uncertainty continues, both new launch activity and buyer decision making could become more measured. Q3 data will provide a clearer indication of whether the Q2 moderation was a temporary response to external factors or the start of a broader adjustment in market activity,” she added.
Supply constrained
Around 92,300 sq metres of new office space entered the market in H1, taking total stock to 9.46 million sq metres. A further 150,000 sq metres is due by year-end, with 379,000 sq metres planned for 2027 and 718,000 sq metres for 2028, when inventory should reach 10.7 million sq metres.
Cavendish Maxwell expects supply to stay constrained through 2026, as construction delays typically defer planned completions, particularly for early-stage projects.
Business Bay tops rankings
Business Bay took the top spot for office sales with 814 combined off-plan and ready transactions, overtaking Al Sufouh 1 (498), which slipped to second. Jumeirah Lakes Towers (333), Dubai Maritime City (88) and Barsha Heights (82) rounded out the top five, which together made up over 70 per cent of all transactions.
Sales prices rose 15 per cent year-on-year to Dh2,012 per sq ft, while rents climbed 14 per cent to Dh189 per sq ft per annum — both easing slightly quarter-on-quarter. The biggest rent gains came in Downtown Dubai (17.5 per cent), Barsha Heights (17.2 per cent) and DIFC (17.1 per cent).
Half of off-plan deals were for units under 1,000 sq ft, though demand also grew for larger units above 2,000 sq ft. In the ready market, offices between 1,000 and 2,000 sq ft dominated, accounting for 53 per cent of sales.
Source: Khaleej Times