Dubai office market demand outpaces new supply, market sees shortage despite new spaces

The Dubai office market is expected to remain undersupplied until the end of the decade despite nearly 9 million square feet of new space scheduled for delivery by 2030, according to research by Bright Rich | CORFAC International.

According to research by Bright Rich | CORFAC International, vacancy rates are projected to fall from 4 per cent in 2025 to just 0.7 per cent by 2030, even as the emirate records one of its largest office construction cycles in more than a decade.

Dubai’s total office stock is forecast to rise from 110 million square feet to 119 million square feet by 2030, with almost nine million square feet of additional space due to come to market. That represents 55 per cent more supply than was delivered during the previous five years.

Demand is continuing to outpace new completions as international companies expand in Dubai and the emirate’s economy grows.

Georgii Martyanov, Director of Bright Rich | CORFAC International in the UAE, said: “With an average annual GDP growth of 4.7 per cent, net office absorption of offices is estimated at around 150,000 sq. m per year, exceeding new supply in most years. As a result, the vacancy rate is expected to continue declining – from 4 per cent in 2025 to 0.7 per cent by 2030, taking into account planned deliveries.”

The research suggests the shortage of Grade A office space will continue to push up rents and capital values, particularly in established business districts such as Downtown Dubai, Business Bay and Sheikh Zayed Road.

“Limited supply will put upward pressure on rental rates and intensify competition for prime office space,” Viktor Zaglumin, co-founder and partner at Bright Rich | CORFAC International, said. “Developers are focusing on high-quality, tech-enabled spaces that meet modern office requirements. As a result, the share of high-grade properties is increasing, enhancing the market’s investment appeal.”

Much of the new development is concentrated in Grade A office projects. Prices for off-plan offices in established locations currently range from AED 3,900 to AED 6,500 per square foot, while offices in emerging areas start from around AED 1,500 per square foot.

The next phase of growth is expected to come from newer office districts as traditional business hubs become increasingly constrained.

Areas including Motor City, Meydan Horizon, Jumeirah Village Circle and Jumeirah Village Triangle are emerging as new business clusters, offering developers and investors the opportunity to enter the market before values rise further.

The largest office projects scheduled for delivery over the next five years include DIFC Square in 2026, Immersive Tower in 2027 and Lumena Alta in 2030.