Office sales in Dubai surged by almost 200% to Dh15.8 billion in the first half of 2026.

Sales transactions in Dubai’s office market totaled Dh15.8 billion in the first six months of 2026, registering nearly 200% annual growth and doubling sales compared to the second half of 2025, reported Cavendish Maxwell.

Transactions between January and June grew by over 38% annually to 2,600, with off-plan transactions accounting for 65%. High-end dealings saw an all-time high, with over 220 deals over Dh20 million, compared with only 20 such deals in the previous year. Over 95 per cent of such Dh20 million-plus dealings are off-plan.

Off-plan office buyers spent an average of Dh8.3 million per office during the first half of 2026, a jump of 133% compared to Dh3.5 million last year. The price of ready offices increased by almost 14% to Dh3 million, from Dh2.6 million.

Momentum Slows in Second Quarter

Even though there was robust performance in H1, the momentum declined in Q2 as transactions fell by 35.8% compared to Q1. Prices and rentals witnessed marginal declines. The decline in momentum was largely because of the ready segment.

“While annual figures have been positive during the first half of 2026, the quarter-on-quarter data shows that the momentum in the office market has started to ease. Despite the strong fundamentals of the office real estate market of Dubai, including a diversified economy, strategic location and business-friendly regulations, the market is entering the second half in an uncertain state,” said Vidhi Shah, Director and Head of Commercial Valuation at Cavendish Maxwell.

According to her, “performance for the next few months will be increasingly dependent on the geopolitical environment, the speed of future supplies, and the occupier demand level. In case the region is marked by instability, both future launches and decisions made by buyers may take place at a slower pace. The third quarter will give a better understanding of whether the slowdown that we saw in the second quarter was a reaction to external factors or the beginning of something bigger.”

Supply restricted

New office space amounting to 92,300 sq metres was supplied in H1, resulting in an increase in total inventory to 9.46 million sq metres. In addition, another 150,000 sq metres will be supplied by the end of the year, with 379,000 sq metres scheduled for 2027 and 718,000 sq metres for 2028, thus increasing inventory to approximately 10.71 million sq metres by the end of 2028.

Cavendish Maxwell believes that supply will be constrained till 2027, as construction delays tend to push back completion dates, especially for early-stage projects.

Business Bay ranks top

Business Bay was ranked at the top of office sales in the city with 814 sales, both off-plan and ready, surpassing Al Sufouh 1 (498), which ranked second. Jumeirah Lakes Towers (333), Dubai Maritime City (88) and Barsha Heights (82) completed the list of the top five areas, which collectively accounted for more than 70% of total transactions.

Average sales price rose by 15% to Dh2,012 per sq ft on an annual basis, while average rents increased by 14% to Dh189 per sq ft on an annual basis, but both showed a slight decline annually. Largest percentage increases in rents were witnessed in Downtown Dubai (17.5%), Barsha Heights (17.2%), and DIFC (17.1%).

One-half of all off-plan transactions were for units less than 1,000 sq ft; however, there was increasing interest in units above 2,000 sq ft. For the ready market, office units sized 1,000 to 2,000 sq ft made up 53% of transactions.