The commercial real estate market in Dubai is growing quickly right now. The average price of an office has gone up 22% in the last year, to Dh190 per square foot. Occupancy rates are almost at record highs, and it's still very hard to find Grade A space.

The Chestertons MENA study shows that the rise is being driven by professional services firms, multinational companies moving to new locations, and businesses in the regulated sector that are growing and competing for limited premium space.

Dubai Internet City, DIFC, and Business Bay are still the most popular places to live because they have good infrastructure, are well-known, and are close to international business. There isn't a lot of Grade A space available, so occupancy is about 95%. Citywide office occupancy is about 92%. By the third quarter of 2025, the vacancy rate had dropped to about 7.5%, which is much lower than usual. This shows how hard it is to find good office space in the emirate.

Smaller markets are very busy. Many tech companies, digital media companies, and e-commerce businesses are moving to Jumeirah Lakes Towers, Barsha Heights, Dubai South, Mohammed bin Rashid City, and Dubai Harbour because the prices are low, the layouts are flexible, and the internet is fast. Tenants needs are changing a lot. As more people work from home and in the office, there is more demand for furnished offices with flexible leases. Landlords are responding by offering shorter leases, easy-to-install fittings, and smart settings.

Modern buildings are putting more and more emphasis on wellness features like natural light, biophilic design, high-quality air filtration, outdoor spaces, gyms, and cafes. They also use technology like digital room booking and high-definition video conferencing. Chestertons says that by 2025, only 0.89 million square feet of new office space will be built. In 2026, this will grow to 2.3 million square feet, and in 2027, it will grow to 4.1 million square feet. By the time that is through, though, a lot of it may already be rented out or otherwise used up.

Cushman & Wakefield said that a lot were already leasing supplies for 2025. Actually, up to the third quarter of the year 2025, only 770,000 square feet had come up and supply problems were expected to last till 2027.

Savills has given their report on increased rents in prime submarkets like DIFC, Business Bay, Downtown, and TECOM, up 45% from the previous year. Knight Frank's second half 2024 analysis provides that the leasing rates rose 9.1% and demand increased 64% year-over-year, mainly coming from the banking, real estate, and services sectors.

Grade A commercial properties are appealing for long-term investments due to the fact that they rent well and are in short supply, yielding a high occupancy rate. People believe that the gross rental yields for top office investments are between 7% and 8%, which is very attractive for the industry.

Deals in commercial real estate were up 18.2 percent in February 2025 from the same period in 2024, with a total value of Dh9.7 billion. What this means is that investors are brimming with confidence.

It is changing due to the fact that supply is getting tighter, rents are going up, and investors are really sure of themselves. This is making life tough for tenants as prices rise and loads of other people also seek apartments. In cases where demand isn't strong, owners and developers can win big.

It appears that the plan to make Dubai a global business hub is paying off. Infrastructure, rules, and strategic location keep attracting foreign companies to set up or expand their businesses in the Middle East.