Dubai office market surges as demand outpaces supply
Dubai's office market posted a sharp rise in activity in the first quarter of 2026, with transaction values more than tripling year-on-year to AED8.2 billion ($2.2 billion) across roughly 1,600 deals, even as regional tensions weighed on volumes in March.
Sales prices climbed nearly 25% year on year, and rents rose around 20%, driven in part by strong demand for off-plan offices, a segment that had barely registered before this year. Al Sufouh 1, Business Bay and Jumeirah Lakes Towers accounted for the bulk of activity, with the top five locations representing over 70% of all first-quarter transactions.
January and February drove the bulk of deal volumes, accounting for more than four-fifths of the quarter's activity. March saw a year-on-year dip of over 10%, with ready transactions falling by nearly two-thirds as regional tensions escalated following the outbreak of the Iran conflict on February 28.
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Muhammad Ali Bandial