Dubai’s booming economy and influx of new businesses are fueling an unprecedented shortage of high-quality office space, especially in prime districts like Downtown Dubai and DIFC, where occupancy rates have hit nearly 100%. Despite adding 740,000 sqft of new office space in 2024, demand continues to outstrip supply, driving office rents up by 22% year-on-year.

With active business licenses reaching 122,220 as of February 2025—a 26% increase—companies are scrambling for space, even securing offices during construction to avoid missing out. This intense competition is pushing firms to relocate to emerging business hubs like Expo City, Dubai Production City, and MBR City.

Experts predict further rental hikes in 2025, with developers repurposing residential and retail spaces to meet demand. While large-scale projects are set to ease pressure in the coming years, Dubai’s office market will remain tight in the short term, creating opportunities for investors to deliver high-quality commercial assets.