Something remarkable is happening with offices in Dubai. Finding a good office for a team has become a real quest, and for investors commercial property has turned into one of the most interesting segments of the market.
In shortOffice rents in Dubai rose 31.5% in a year for Grade B and 26.2% for Grade A, with only about 6% of space vacant. Businesses should start the search early and lock in long leases. For investors, commercial property is one of the most interesting segments, keeping the 5% VAT on purchase in mind.
The numbers
According to JLL for Q2 2026, Grade B office rents rose 31.5% year on year, Grade A by 26.2% and prime offices by 13.6%. Almost no space is left: overall vacancy fell to 6.1% from 7.7% a year earlier.
Why this is happening
The reason is obvious. Businesses are moving to the emirate en masse, and new office space cannot keep up with demand. Large companies are opening regional headquarters and the number of small firms is growing: since 2020 the number of SME licences in the UAE has risen by 140%.
Interestingly, Grade B is rising fastest. When Grade A offices are full, companies step down a level, and older buildings in good locations suddenly become sought after.
What this means for businesses
- Start early. Allow months, not weeks, to find a good office.
- Negotiate a long lease. A fixed rate for several years is worth more than a discount right now.
- Consider buying. With rents rising like this, owning your office may work out cheaper than paying a landlord.
What this means for investors
Commercial property in Dubai now works like a business: tenants are companies, leases are longer than in residential, and demand exceeds supply. But there are nuances to know in advance:
- VAT of 5% applies when buying an office, unlike residential, but there is a legal way not to pay it — see the video below;
- location is everything: an office in the wrong place will stand empty even in a hot market;
- look at the building’s condition and service charges — they can be high in older buildings.
Video: how not to pay VAT when buying commercial property
I cover this topic in detail in a video (in Russian). Watch it before buying an office or other commercial property.
More on choosing a property that will work steadily for years in the Commercial Real Estate section.
If you are looking for an office for your company or considering commercial property as an investment, leave a request and we will find options.
Figures as of September 2026. Sources: JLL (Dubai office market, Q2 2026), UAE SME licence data.
