Dubai’s office market recorded AED15.8 billion worth of sales in H1 2026, a year-on-year rise of almost 200% and double the total sales values of H2 2025, says leading real estate advisory and property consultancy, Cavendish Maxwell.

The number of transactions from January to June 2026 climbed more than 38% compared to the same period last year to reach 2,600, with the off-plan sector accounting for 65% of deals, according to Cavendish Maxwell’s latest Dubai’s office market performance report.

The surge in sales values was driven by a rise in high value transactions, which reached their highest levels on record in H1. More than 220 purchases were for offices with a price tag of more than AED20 million – a dramatic increase from the 20 transactions in both halves of last year. 95% of the AED20million+ deals were off-plan.

Off-plan buyers paid an average of AED8.3 million for their office premises in H1 2026, a rise of 133% on the H1 2025 average price of AED3.5 million. Ready office prices rose just shy of 14% to AED3 million, compared to AED2.6 million a year ago.

While overall H1 activity was higher than 12 months before, market momentum softened in Q2 with almost 36% fewer transactions than in Q1 and a slight moderation in sales prices and rental rates. The slowdown primarily affected the ready segment, reflecting seasonal factors alongside regional uncertainty, which contributed to some investors taking a more cautious approach, Cavendish Maxwell added.

Vidhi Shah, Director, Head of Commercial Valuation at Cavendish Maxwell, said: “Year-on-year indicators remained positive in H1 2026, but quarterly trends suggest a moderation in office market momentum. While the structural foundations of Dubai’s office real estate sector – including a diversified economy, strategic location and pro-business regulatory environment – remain very much intact, the market has entered H2 in a more uncertain environment.

“Performance in the coming months will increasingly depend on the geopolitical situation, the pace of future supply and the depth of occupier demand. If regional uncertainty continues, both new launch activity and buyer decision making could become more measured. Q3 data will provide a clearer indication of whether the Q2 moderation was a temporary response to external factors or the start of a broader adjustment in market activity.”

Cavendish Maxwell’s Dubai office market performance report also shows that in H1 2026:

• Around 92,300 square metres of new office space was delivered
• Business Bay moved into the number one spot for transactions, with 814 sales
• Sales prices rose 15% year-on-year; rents climbed 14% - but both declined slightly quarter-on-quarter
• The biggest rent hikes were in Downtown Dubai, Barsha Heights and DIFC
• Half of off-plan transactions were for small units (less than 1,000 sq ft)
• Offices spanning 1,000 to 2,000 sq ft took the lion’s share of ready sales, at 53%

New supply

Around 92,300 sq metres of new office space came to the market in H1, bringing Dubai’s total office stock to 9.46 million sq metres. Another 150,000 sq metres is due for completion by the end of this year, 379,000 sq metres is in the pipeline for 2027 and 718,000 sq metres is planned for 2028, when total inventory is set to reach 10.7 million sq metres.

Despite this sizeable pipeline, Cavendish Maxwell expects office supply to remain constrained for the rest of 2026. As historical trends show, construction delays are likely to affect delivery timelines, resulting in some of the planned supply being deferred. Most near-term projects are in the advanced stages of construction, so any delays caused by regional uncertainty are likely to affect projects in the early stages of development.

Business Bay bags top sales location

Business Bay moved into the number one position for office sales, with 814 combined off-plan and ready transactions in H1. Al Sufouh 1, which was the top location in Q1, slipped into second place with 498 sales. Next were Jumeirah Lakes Towers (333), Dubai Maritime City (88) and Barsha Heights (82). These top five locations accounted for more than 70% of all transactions.

Sales prices and rental rates

Sales prices rose 15% year-on-year and rents climbed 14% - but both declined slightly quarter-on-quarter, according to Cavendish Maxwell’s study.

Sales prices reached AED2,012 per sq ft in H1, with a slight moderation in Q2 compared to Q1, driven by softer conditions in the ready market. Heightened regional uncertainty played a role in a more measured buyer environment, resulting in slower transaction activity and longer deal completion timelines. In response, some sellers reduced prices in order to complete transactions.

Average office rental rates hit AED189 per sq. ft. per annum in H1 2026 and, as with sales prices, saw an ease in momentum in Q2 with average rates declining on a quarterly basis.

The biggest rent increases were in Downtown Dubai (17.5%); Barsha Heights (17.2%) and DIFC (17.1%).

Office sizes

Half of off-plan deals were for premises of less than 1,000 sq ft, highlighting continued demand for smaller office units. However, H1 also saw increased demand for off-plan units above 2,000 sq. ft., with several high-value transactions for larger offices.

The ready market was dominated by offices between 1,000 and 2,000 sq ft, which accounted for 53% of all sales.