Dubai Office Leasing Market: Key Highlights (Jan–Feb 2025)
Dubai’s commercial office market kicked off 2025 with strong momentum, driven by high demand, limited supply, and record-low vacancies across major business districts.
Market Snapshot
Citywide Occupancy: ~92% (Prime areas at 95–99%)
Average Rent Growth (2024): ↑ 17–22%
Forecast Rent Growth (2025): ↑ 10–12%
Demand Drivers: Corporate expansions, new market entrants, and sector-specific growth (finance, tech, real estate)
District-Wise Highlights
DIFC
Rents: ~AED 355/sq ft (Highest in Dubai)
Occupancy: ~99%
Demand: Banking, finance, legal
New Supply: DIFC Expansion underway (2028)
Business Bay
Rents: AED 180–200/sq ft (↑46% YoY)
Occupancy: 95–99%
Affordable vs DIFC; high leasing volume
Downtown Dubai
Rents: ~AED 235/sq ft (33% below DIFC)
Occupancy: 95%+
Attractive for multinational HQs
JLT / DMCC
Rents: >AED 200/sq ft (↑67% YoY)
Occupancy: 90%+
Demand from crypto, commodities, SMEs
Dubai Internet City
Rents: AED 160–200/sq ft
Occupancy: 95%+ (New buildings fully pre-leased)
Strong demand from tech and digital firms
New Supply (Jan–Feb 2025)
One Za’abeel (SZR): Super-premium offices, 50%+ pre-leased
Innovation Hub Phase 2 (DIC): 366,000 sq ft – 100% pre-leased
Uptown Tower (JLT): 495,000 sq ft – Fully leased before completion
Despite deliveries, most new space is pre-leased, offering minimal relief to supply crunch.
Emerging Tenant Trends
Flight to Quality: Tenants prefer Grade A, sustainable, LEED-certified buildings
Flexible Space Demand: Co-working spaces rising due to cost and scalability
Longer Lease Terms: 5+ year commitments becoming standard
Dual Licensing: High interest in projects allowing both onshore & free zone operations
Outlook 2025
* Occupancy to rise to 94% citywide
* Rents to continue rising, especially in Grade A buildings
* New projects in pipeline, but meaningful supply relief expected only by 2027–28