Dubai’s commercial real estate market is experiencing an unprecedented surge, with office rents climbing to new heights and occupancy rates nearing record levels. According to the latest research from Chestertons Mena, the demand for premium office spaces, particularly in key hubs like DIFC, Business Bay, and Dubai Internet City, remains robust. These areas are highly sought after due to their advanced infrastructure, prestigious locations, and proximity to international business activities. The limited availability of Grade A office space has pushed occupancy levels to approximately 95%, with citywide office occupancy close to 92%. The average office rent in Dubai has reached around Dh 190 per square foot, marking a 22% year-on-year increase. This growth is driven by professional services firms, multinational relocations, and expanding regulated-sector businesses. Emerging micro-markets such as Jumeirah Lakes Towers (JLT), Barsha Heights, Dubai South, Mohammed bin Rashid City, and Dubai Harbour are also gaining traction, attracting tech companies, digital media operators, and e-commerce players. These areas offer competitive rates, scalable layouts, and excellent connectivity. Workplace preferences in Dubai are evolving, with a growing demand for turnkey, furnished offices with flexible leases, reflecting the shift to hybrid working models. Landlords are responding by offering shorter lease terms, plug-and-play fittings, and smart office environments. Wellness features such as natural light, biophilic design, high-grade air filtration, outdoor breakout areas, gyms, and cafés are becoming standard in modern commercial buildings. Technology integration, including digital room booking systems and high-definition video conferencing, is also on the rise. Investor interest in Grade A commercial assets is strong, driven by robust rental performance, supply constraints, and high occupancy rates. Chestertons forecasts that the tight supply environment for high-spec space will support rental stability in the coming years. The supply of new office space remains constrained, with only about 0.89 million square feet expected to be completed in 2025, increasing to 2.3 million square feet in 2026 and over 4.1 million square feet in 2027. However, much of this new space may already be pre-leased or absorbed before completion. Independent real estate sources, including Cushman & Wakefield and GulfBase, confirm the tight supply and strong pre-leasing activity, reinforcing upward pressure on rents and occupancy. By Q3 2025, Dubai’s overall office vacancy had fallen to around 7.5%, reflecting intense competition for premium space. Gross rental yields for prime office investments are estimated in the 7–8% range, highlighting the attractiveness of commercial real estate for long-term investors. In February 2025 alone, commercial real estate sales transactions grew by 18.2% year-on-year, with a total value of Dh 9.7 billion. This surge signals strong investor confidence in the sector’s long-term performance. Analysts conclude that Dubai’s commercial real estate market is undergoing a structural upshift, with tightening supply, rising rents, and strong investor conviction converging to create a rare opportunity for premium returns. This boom validates Dubai’s strategy as a global business hub and a driver of next-generation growth.