Savills Report Highlights Stabilizing Dubai Office Rents and Growing Demand for Larger Spaces

Real Estate

Savills Report Highlights Stabilizing Dubai Office Rents and Growing Demand for Larger Spaces

A new report by real estate advisory firm Savills signals a shift in Dubai’s office market dynamics, with rental growth plateauing in several submarkets even as demand for larger commercial spaces continues to rise.

The Q2 2025 Dubai Office Market in Minutes report reveals that the broad rental increases observed in 2024 are giving way to a more nuanced market environment. While average prime office rents remain 36% higher year-on-year, 11 out of the 23 submarkets monitored by Savills recorded no quarterly rent change, suggesting a stabilizing trend.

“This signals a more balanced phase,” noted Rachael Kennerley, Director of Research at Savills Middle East. “Core areas still draw strong demand, but occupiers are taking a more calculated approach—securing future spaces early or exploring new, affordable locations.”

In contrast to prior years, leasing demand has shifted toward larger office formats. In Q2 2025, 44% of leasing enquiries were for spaces ranging between 10,000 and 20,000 square feet, primarily from companies seeking to expand their regional operations. Offices smaller than 10,000 sq ft made up 38% of total demand, down from previous years.

According to Toby Hall, Head of Commercial Agency at Savills Middle East, “We’re witnessing clear momentum from international businesses choosing Dubai as their base. Larger footprints are becoming the norm, reinforcing the city’s role as a commercial hub despite global headwinds.”

The report also points to new types of supply entering the market. Traditionally residential developers are now venturing into strata office projects, contributing to a more diverse ownership model and expanding the commercial footprint beyond Dubai’s central business districts. This aligns with the Dubai 2040 Urban Master Plan, which aims to create a more accessible "20-minute city."

With memories of recent rent hikes still fresh, more tenants are opting to secure rights of first refusal on additional space in their current buildings. This strategy allows them to expand when needed without relocating or renegotiating lease terms.

Looking ahead, Savills predicts growing interest in emerging office hubs such as Dubai South and Expo City, thanks to their availability of larger floor plates, competitive pricing, and improving infrastructure links.

The report reflects an increasingly strategic and diversified office market in Dubai—one that is transitioning from rapid rental growth to sustainable expansion and long-term planning.