UAE Office Market Dynamics, Q1 2026

Office rental rates maintained upward trajectory through the quarter despite a more cautious leasing environment. Headline rates showed no immediate softening, reflecting landlord pricing discipline and limited available stock

Leasing activity reflected a two-speed market in Q1. Renewal volumes in Dubai increased 11.2% year-on-year, demonstrating existing occupier confidence. However, new lease transactions declined as some prospective tenants deferred decisions pending improved regional clarity. Overall, occupier commitment from existing tenants remained solid.

Limited available stock, particularly in prime segments, continued to shape leasing activity and support rental growth. New supply deliveries met Q1 schedules, though ongoing procurement considerations may influence development timelines.