Dubai office rents steady in 2Q as demand shifts to larger spaces

A more tempered quarter for Dubai’s office market: Dubai’s office market is showing signs of a slight cooldown, with rents in several areas stabilizing in 2Q 2025, according to Savills’ Dubai Office Market 2Q report (pdf). Despite 11 of the 23 sub-markets tracked by Savills seeing rents remaining flat q-o-q, rents are still up 36% y-o-y on average.

REMEMBER- In 1Q 2025, Dubai’s office market saw record-low vacancy and steep rent hikes, as strong demand and tight supply drove rents up across all submarkets — with average increases hitting 45% y-o-y.

Areas seeing rental growth: Prices rose the most in Dubai Silicon Oasis, posting a 13% q-o-q rise, followed closely by a 12% uptick in Al Barsha Heights’ rents. Business Bay, which recorded a 94% y-o-y surge in rents during the first quarter, saw a 10% q-o-q rise this time.

Leasing demand in 2Q skewed toward bigger offices, with 44% of enquiries concerning spaces between 10k-20k sq ft — outpacing interest in smaller units below 10k sq ft, which made up 38% of the demand.

Hold ‘em: Lease renewals remained the most common transaction type, making up 41% of the total. More occupiers are locking in future growth by negotiating right-of-first-refusal on adjacent units, preferring to stay put rather than relocate — which accounted for 29% of agreements. Only 12% of transactions came from new entries.

Financial and tech firms are leading the charge: 53% of Savills’ transactions came from firms working in financial services during the quarter, followed by tech and media businesses at 21% and consulting companies at 11%.

Another factor potentially accelerating the cooldown? More supply is incoming, wth some 1 mn sq ft expected between late 2025 and 1Q 2026. Plus: Geopolitical developments could weigh on activity, Savills warned.

It’s still cut-throat. Landlords are increasingly opting for tenants with strong track records amid higher rents and tighter supply, while interest in strata-ownership — where specific parts of a property are owned by different people — is also on the rise, Savills noted. Dubai South and Expo City are set to see more growth on the back of greater availability and affordability, the report added.