Dubai‘s office rents have skyrocketed, with a notable increase of 45 percent in the first quarter of 2025, according to the latest insights from Savills. This surge highlights the city’s robust economic recovery and the escalating demand for prime commercial spaces. As more businesses capitalize on opportunities within this vibrant market, the dynamics of office rentals reflect not only rising costs but also a shift in preferences among occupiers. In this article, we delve into the factors driving this growth and what it means for businesses looking to establish a presence in Dubai.
Market Dynamics and Growth Surge
Dubai’s office market is experiencing a significant transformation, characterized by increased occupancy levels and a competitive landscape. The latest report from Savills indicates that the emirate has entered a growth phase defined by heightened rental prices and reduced vacancy rates. In fact, average office rents across 22 sub-markets reflect a staggering 45 percent increase year-on-year.
High Demand in Key Districts
Business hubs such as the Dubai International Financial Centre (DIFC), Business Bay, Downtown Dubai, and TECOM are showing exceptional performance. Notably, DIFC has reported occupancy rates soaring to 98 percent, underscoring the demand for well-located and high-quality Grade A spaces. This demand is not only local; international occupiers are also keen on securing prime locations in these districts.
Additionally, the overall cost of occupancy has seen a 4.9 percent uptick, as illustrated in Savills’ global cost benchmarking report. This comprehensive measure encompasses base rent, fit-out expenses, and related costs, positioning Dubai firmly among the most competitive prime office markets worldwide.
Sector-Specific Growth Drivers
The remarkable rise in Dubai office rents, up 45 percent, is largely fueled by thriving industries such as financial services, consulting, and technology and media. These sectors accounted for more than half of all Savills transactions in the first quarter, demonstrating a robust demand for office space. Notably, smaller, agile companies are also stepping up their presence, particularly in sub-markets like Dubai South and Expo City, which offer both value and accessibility.
Moreover, the Dubai Chamber of Commerce reported a welcoming growth of 70,500 new companies in 2024, marking a 4.6 percent increase year-on-year. This uptick further indicates strong confidence in the emirate’s business environment, attracting new entrants who prioritize flexible and strategically located workplaces.
Adapting to Occupier Expectations
With the supply of Grade A office space remaining tight in established areas, landlords are adapting quickly by offering tailored leasing options, enhanced amenities, and refurbishment projects. Some landlords in Business Bay are now quoting rents comparable to those in DIFC, highlighting a broader uplift in the perceived value of various sub-markets. Additionally, for many firms, lease renewals are the preferred option, especially outside DIFC, where the Real Estate Regulatory Agency (RERA) offers rental protections that ensure stability amid rising costs.
As businesses reassess their spatial needs, the focus is shifting toward functional layouts and long-term adaptability rather than expansive floor plates. Anticipating future demand, new office developments are already in the pipeline, many of which are seeing strong pre-commitment levels, further solidifying the trend that action and competition for prime office space will remain vibrant throughout 2025.
Toby Hall, Head of Commercial Agency at Savills Middle East, emphasized, “Dubai’s office market is evolving, not tightening. The data shows growing maturity, where rental increases reflect sustained interest, strong business fundamentals, and a shifting view of Dubai as a long-term destination for global enterprise.”