Dubai and Abu Dhabi’s office markets closed Q4 2025 on a strong footing, supported by continued rental growth and resilient occupier demand. Limited availability of Grade A space, ongoing economic diversification and a clear shift towards smaller, more flexible office formats underpinned market performance, according to Savills’ latest Office Market in Minutes report.
In Dubai, average office rents rose to around AED 225 per square foot, reflecting annual growth of more than 32 per cent. Commercial real estate transactions totalled AED 12.4bn in December 2025 alone, highlighting sustained investor confidence.
Tenant demand remained heavily focused on offices under 5,000 square feet, reinforcing the preference for agile, right-sized work environments.
Occupiers in Dubai are becoming increasingly pragmatic in their decision-making, placing greater importance on lease security and operational efficiency.
Rental levels varied across key submarkets, with DIFC continuing to command the highest rents, while Business Bay, JLT and Expo City gained traction as emerging office destinations.
Commenting on the market, Savills noted that Dubai’s underlying fundamentals remain strong, with occupiers adopting a more strategic approach to space selection.
Demand continues to favour high-quality Grade A offices that offer flexibility and long-term resilience amid evolving workplace requirements.
In Abu Dhabi, the Grade A office market remained firmly landlord-favourable during Q4, with average rents rising to approximately AED 2,375 per square metre per annum.
Demand was led by sectors such as financial services, technology and engineering, while interest in smaller offices and flexible layouts continued to strengthen.
Looking ahead, Savills expects both Dubai and Abu Dhabi to become more selective markets in 2026 as new supply is delivered. Despite this, prime assets in established locations are forecast to remain well supported, driven by sustained business growth and regional investment activity.
