Businesses in Dubai are moving from central districts to emerging areas like Expo City due to a lack of high-quality office space. Demand for Dubai prime office space is now outpacing supply in key business zones.
Adam Wynne of Knight Frank Dubai noted that companies are prioritizing top-tier spaces, even securing offices during construction. This trend has sparked interest in newer locations like Dubai Science Park and Expo City, where modern infrastructure and competitive rents are attracting tenants.
By Q4 2024, the Dubai International Financial Centre (DIFC) reached nearly full occupancy. On Sheikh Zayed Road, 17 Grade-A buildings averaged 95.4% occupancy. According to Asteco, over 700,000 square feet of new office space launched in 2024 alone.
This demand spike stems from geopolitical shifts and Dubai’s business-friendly policies, including zero income tax and affordable real estate. New multinational firms and expanding local businesses are fueling the rise in lease activity.
In H2 2024, lease rates in core districts rose by 9.1%, with the Trade Centre District leading the way. Despite growth, prime office rents in areas like DIFC remain 50% below 2009 levels, according to Faisal Durrani from Knight Frank.
As supply lags, many tenants are renewing leases to avoid rising prices. This shortage of Dubai prime office space is prompting rapid development.
Between 2025 and 2028, Knight Frank forecasts 8.2 million sqft of new prime office supply—an 86% increase over the previous four years. Major contributors include DIFC Square, Tecom, and Aldar’s project on Sheikh Zayed Road.
