Dubai, UAE– Dubai’s office market secured AED8.2 billion worth of sales in Q1 2026 – a year-on-year rise of 203% and nearly 73% higher than the previous quarter, according to leading real estate advisory and property consultancy, Cavendish Maxwell.
Transactions rose by almost 75% to reach 1,600 between January and March, with the off-plan sector driving activity and overtaking ready transactions for the first time since Q3 2010, more than 15 years ago, the company said. Off-plan sales values hit AED6.4 billion, an increase of more than 760% compared to Q1 2025 and a quarter-on-quarter hike of over 165%. The sector recorded around 950 purchases – nearly five times as many as Q1 last year and 27% more compared to Q4 2025 – accounting for more than 60% of total office sales volumes.
Cavendish Maxwell’s latest office market analysis, published today (4 June), shows that January and February accounted for 83% of sales volumes and 81% of total values. Momentum eased in March, when transactions declined 13.4% year-on-year.
Vidhi Shah, Director, Head of Commercial Valuation at Cavendish Maxwell (in picture), said: “Dubai’s office market recorded a strong start to the year, with growth in transaction volumes and values highlighting sustained demand across the sector, driven by continued business formation and international corporate expansion. Dubai’s position as a world-leading business hub and the region’s number one business destination was also reflected in new business registrations: despite regional tensions escalating in March, the Dubai Chamber of Commerce registered more than 2,700 new companies in the month alone. Meanwhile, DIFC attracted 775 new companies in Q1, with March the strongest month with 258 new registrations – up nearly 60% year-on-year.
“The March slowdown in office sales activity may appear to be linked to wider geopolitical reasons, but other factors including the timing of Ramadan and Eid Al Fitr and the usual lag in registration data also contributed, meaning the March figures reflect transactions agreed before and during the early stages of the conflict. The next few months will provide a clearer view of demand.
“Looking ahead, Dubai’s office market is expected to remain resilient, as demand fundamentals remain in place thanks to the city’s regulatory environment, tax competitiveness and quality of infrastructure. While the pace of sales and leasing activity could become more measured in the near term, Government policy is expected to provide meaningful support to the market. The AED1 billion support package announced earlier in the year, combined with Dubai’s established track record of proactive policy intervention gives an important buffer against downside risks,” she added.
Cavendish Maxwell’s research also shows that in Q1 2026:
- Around 73,300 square metres of new office space was delivered
- While off-plan sales volumes and values surged, ready office transactions declined
- The Al Sufouh 1 area saw the most transactions, with off-plan sales totalling 380
- Sales prices rose nearly 23% year-on-year, reaching AED2,029 per square foot
- Average rental rates hit almost AED192 psf – up 20% on Q1 last year
- The biggest rent hikes were in DIFC (28.2%), Barsha Heights (27.1%) and Downtown Dubai (27%)
- Small to mid-sized units (less than 2,001 sq ft) dominated sales activity, accounting for nearly three quarters (74.4%) of off-plan transactions and over 88% of ready sales
Some 73,300 sq metres of new office space came to the market in Q1, including DIFC Square, a 55,700 sq metre, Grade A development that was completed ahead of schedule and fully-leased pre-handover. Another 240,000 sq metres is in the pipeline for the rest of the year, which would bring Dubai’s total office stock to nearly 9.7 million sq metres by December 2026. However, only 23.6% of expected 2026 supply has been delivered so far.
Looking ahead, Dubai’s total office inventory is expected to reach 10 million sq metres by 2027 and 10.8 million sq metres by 2028. Although regional tensions could potentially affect construction timelines, much of the upcoming pipeline consists of committed projects that are under-construction with financing and contractors in place.
Off-plan transactions surged in Q1 with 950 sales, around 40% of which were concentrated in a single project, Shahrukhz by Danube. Ready transactions declined 16.4% compared to Q1 last year and 22.3% against Q4 2025 to 615 units, a softening largely driven by the March slowdown in activity. Ready transaction values, at AED1.8 billion, were down 8.5% year-on-year and 23.1% quarter-on-quarter.
Total transactions in March were nearly 60% up compared to March 2025, driven by the off-plan sector where values surged 191%. By contrast, ready office sales declined almost 55% in the same period.
Al Sufouh 1 moved into top place for transactions, with 380 sales in the off-plan segment. Next were Business Bay, with 373 sales, Jumeirah Lakes Towers (223), Dubai Maritime City (78) and Trade Center 2 (65). These top five locations accounted for 71.5% of all transactions.
Sales prices rose nearly 23% year-on-year to reach AED2,029 psf, despite a reduction in activity in March. Looking ahead, price trajectory will depend on regional developments and buyer confidence, with the coming quarters expected to provide a clearer picture of market direction.
Average rental rates hit AED191.9 psf, up 20% on Q1 last year, with landlords continuing to secure asking prices because of a lack of quality office space – especially A-grade stock – in well-connected, established business districts.
Dubai’s core business districts – DIFC and Downtown Dubai – recorded some of the strongest increases at 28.2% and 27% respectively. Business Bay also posted strong growth at 21.6% as the area benefited from spillover demand. There was also notable growth in other established areas like Barsha Heights (27.1%), Dubai Silicon Oasis (22.2%) and Jumeirah Lakes Towers (21.1%) with occupiers seeking high-quality alternatives.
While small to mid-sized units (up to 2,000 sq ft) dominated sales activity, accounting for nearly three quarters (74.4%) of off-plan transactions and over 88% of ready sales, larger units gained prominence in Q1. Sales of offices covering more than 5,000 sq ft accounted for 7.3% of off-plan activity, up from just 1.5% in Q1 2025, highlighting a healthy – and growing – appetite for more spacious premises.
SOURCE: MEDIA RELEASE / SUPPLIED CONTENT WITH IMAGE; ILLUSTRATIVE IMAGE ALSO USED
