The office real estate scene in the UAE is witnessing a remarkable surge. Both Dubai and Abu Dhabi are experiencing staggering growth driven by record-level transactions, rising rents, and ambitious development pipelines — signaling renewed investor confidence and a transformative phase for their commercial districts.
Dubai: Skyrocketing Sales & Rental Growth
1. Unprecedented Transaction Volume
In the first half of 2025, Dubai recorded a jaw-dropping 83 office transactions each exceeding AED 10 million (USD 2.7 million) — a 207% jump from just 27 deals in the same period of 2024.
Commercial property sales for Q2 alone soared to AED 31 billion (USD 8.44 billion), marking a 50% year-on-year increase. Office sales climbed 93% to AED 2.62 billion, with the number of units sold rising by 26%.
2. Rising Rents & Off-Plan Momentum
Downtown Dubai leads the charge with average office prices surpassing AED 5,000 per sq ft, while Business Bay breached the AED 2,000 mark for the first time — up 21.2% since 2020.
Rental growth remains strong even in other zones: DIFC (AED 400 psf for fitted offices), Dubai Design District (AED 280 psf), The Greens (AED 260 psf).
Off-plan office sales are particularly hot in Business Bay, where over 1.3 million sq ft is expected to come to market.
Abu Dhabi: Record Occupancy Meets Expanding Supply
1. Rents Climb Sharply, Occupancy at Record Levels
In Q2 2025, Abu Dhabi’s office rents surged, with annual growth reaching 28.3%, and average asking rents hitting AED 860 per sq m.
Savills reports a 42% year-on-year rent increase in the Central Business District, while ADGM and Outer CBD saw jumps of 43% and 30% respectively — with ADGM rates between AED 2,800–3,500 per sqm per year.
2. ADGM Expansion Fuels Demand
ADGM’s extension into Al Reem Island added nearly 500,000 sq m of office space in Q1, coinciding with a 43% boost in registered firms and a 17% increase in workforce, exceeding 29,000 employees.
3. Grade A Demand Outpaces Supply
Prime office space is in high demand: Prime rents range between AED 180–260 per sq ft per year, and Grade A offices lease for AED 150–180.
With overall occupancy nearing 100%, tenants are gravitating toward new developments like Masdar City Square and The Link, with limited supply easing only with upcoming deliveries.
What This Means for Investors & Tenants
| Region | Key Highlights |
|---|---|
| Dubai | Record-breaking office sales, soaring rents in Downtown and Business Bay, strong off-plan momentum |
| Abu Dhabi | Rapid rent increases, full occupancy in Grade A buildings, ADGM expansion drawing global firms |
Investors are responding to a compelling blend of rising values, premium yield potential, and constrained supply across the region’s major office hubs.
Dubai and Abu Dhabi are experiencing one of their strongest office market cycles. Whether you’re an investor, tenant, or developer, both offer exciting prospects amid rising demand, booming activity, and accelerated growth trajectories. The race is on — and the skyline is evolving fast.