Off-Plan Offices Drive Dubai’s Strongest Commercial Market Performance In Years

Jun 10, 2026
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Dubai has had a tremendous beginning to the year 2026 for commercial real estate with over AED8.2 billion ($2.2 billion) worth of office sales in the first three months. This number reflects a dramatic year-over-year increase of over 203% in total dollar amount sold and close to 75% growth by number with over 1600 total sales during this same period. Increased confidence continues to build on Dubai properties as many businesses expand throughout the emirate.

The growth in office sales for the Dubai real estate shows an overall trend of sustained growth within commercial real estate, specifically as it relates to filling the gap between supply and demand in major business districts.

OffPlanOfficesDriveDubaiStrongestCommercialMarketPerformance

Dominance of Off-Plan Office Market For The First Time Since 2010

The off-plan office segment was dominant throughout Q1 2026 and for the first time since Q3 2010, there were more off-plan office transactions than ready-to-occupy office sales.

Primary data for off-plan offices:

Off-plan office sales of AED 6.4 billion ($1.74 billion)
Growth of over 760% from Q1 2025
Growth of over 165% from Q4 2025
Approximately 950 transactions recorded
Off-plan offices accounted for more than 60% of the total office sales volume

This surge shows growing confidence from property investment in Dubai as they try to get in ahead of the projected future supply shortage. Demand for commercial property in Dubai continues to be strong as both local and international firms look for strategic locations for future growth.

The Commercial Property is Driven by Business Growth

Dubai's global reputation as a major world business centre is one of the main drivers behind the increase in the number of offices in Dubai. In March 2016 alone, the Dubai Chamber of Commerce registered over 2,700 new businesses, with an additional 775 companies opening their doors at DIFC during the first quarter of 2016. Total office market transactions during the first two months of 2016 were concentrated.

First quarter market activity:

83% of all transactions in Q1 were completed during the first 2 months
81% of total transaction value in Q1 was completed during the first 2 months
March's activity was significantly reduced due to the timing of Ramadan, Eid, and registration.

The increase in business groove is bolstering the amount of offices for sale in Dubai. At the same time, many companies are still exploring commercial properties for rent in Dubai as they prepare to establish long term ownership strategies.

Further Increases in Prices and Rents

The Q1 2026 report demonstrated very strong development of capital values and rents.

Market performance:

Average floor area sale price AED 2,029
Year Over Year Price Appreciation: 22.9%
Average floor area rent AED 191.9 per square foot.
Annual Rental Growth: 20%

The strongest annual rental growth occurred in:

These numbers show that the Dubai real estate market has proved to be very resilient in the face of global economic downturns. It also reflects demand for commercial property and real estate investment Dubai with a focus on income-generating commercial assets.

Al Sufouh 1 Leads Transaction Activity

Al Sufouh 1 was by far the most active office market in Dubai in Q1 2026, with 380 off-plan transactions.

Top locations by transaction volume:

Area	Transactions
Al Sufouh 1	380
Business Bay	373
Jumeirah Lakes Towers	223
Dubai Maritime City	78
Trade Centre 2	65

These five districts alone account for 71.5% of all completed office transactions in the quarter. Approximately 40% of all off plan properties for sale in Dubai transaction volume came from one project which is Shahrukhz by Danube. Investors looking for buy ready properties in Dubai are closely following the performance of these established commercial districts.

There is currently a trend among high net worth buyers previously focusing only on luxury properties for sale to diversify into premium-grade office assets given the significant increase in rents and limited supply.

New Supply Comes Into The Market As Demand Remains Strong

In the first quarter of 2026, 73,300 square metres of office space was added to the existing stock. The most significant amount of office space delivered was DIFC Square, a 55,700 square metre office building located in the Dubai International Financial Centre (DIFC). DIFC Square was 100% leased before completion and demonstrates a sustained demand for Premium Office Buildings.

Projected Future Supply:

240,000 square metres by end of 2026
Total Office Supply of approximately 9.7 million square metres at the end of the year
10 million square metres by 2027
10.8 million square metres by 2028

Even with the addition of this new space to the market, demand will continue to be strong for properties for rent in Dubai for both Resident and Commercial Uses. Many businesses utilize the assistance of experienced real estate brokers in Dubai to secure adequate and desirable office space within the established business Districts.

Larger Office Spaces Gain Momentum

For Q1, smaller offices still made up most of the transactions but larger offices started to see more transactions relative to smaller offices than before:

Size Breakdown:

Off Plan Sales - 74% of sales were smaller than 2,000 square feet
Ready Sales - Over 88% of sales were smaller than 2,000 square feet
Off plan sales of larger than 5,000 square feet accounted for just 7.3% of the total off plan transactions
Compared to Q1 2025, larger than 5,000 square foot office sales were only 1.5%.

The increasing size of these transaction sizes indicates an increasing demand for office space by existing businesses to create regional expansion plans for their companies and therefore also contributing towards more commercial properties for sale in Dubai by institutional investors. Additionally, there is also an increased level of enquiries for premium offices for rent in Dubai within Grade A developments.

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