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UHNWI, entrepreneur influx deepening premium office market
Corporate expansions and new market entrants will continue to drive the market
- PUBLISHED: Wed 8 Jul 2026, 8:00 AM
The UAE’s office market shows no signs of slowing down, with strong occupier demand and a growing pipeline of new developments expected to keep the sector on an upward trajectory through 2026 and beyond. This momentum is underpinned by unwavering confidence in the emirate’s status as a global business hub, which continues to attract a steady influx of international companies seeking premium office space, despite geopolitical tensions across the region.
Industry experts and market specialists said confidence in Dubai’s position as a leading global business destination remains unwavering. The UAE’s commercial real estate sector continues to draw sustained and meaningful interest from international corporations, underscoring the market’s long-term appeal.
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“Early indications suggest that most international occupiers are staying the course, remaining committed to their existing leases and regional operations. Businesses are increasingly expanding their footprints, and many are prepared to pay a premium for high-quality, efficient office space. Connectivity to key infrastructure, particularly the Metro, coupled with access to a vibrant food-and-beverage ecosystem, continues to be a major draw for occupiers,” Knight Frank said.
As demand gathers pace, developers appear well placed to rise to the occasion, ensuring that fresh supply comes on stream to bridge the gap and support the next phase of growth in Dubai’s thriving office market.
Another report about Abu Dhabi office market noticed that leasing activity remained robust, driven by both corporate expansions and new market entrants, particularly in the financial, technology and manufacturing sectors as prime office space becomes increasingly scarce, occupiers are showing a clear preference for fitted, ready-to-occupy premises.
“With few new office completions expected before 2027, landlords of premium assets continue to enjoy strong bargaining power. The supply-demand imbalance has reinforced Abu Dhabi’s status as a landlord-favoured market, underpinned by the emirate’s resilient non-oil economy and growing appeal among regional and international businesses.”
Madhav Dhar, co-founder and CEO, ZāZen Properties, said the UAE’s office market has grown into one of the region’s most important commercial real estate sectors, and Dubai is clearly leading that momentum.
“Dubai now has more than 101 million sqft of office inventory, while Abu Dhabi continues to expand as more institutional, financial, and corporate occupiers strengthen their presence in the capital,” Dhar told BTR.
What is interesting is that this growth is no longer just about more buildings or higher rents. It reflects the UAE’s wider evolution as a global business hub. In 2025, Dubai’s office sales values more than doubled to Dh13.1 billion, while transaction volumes rose by over 53% year-on-year basis. That level of activity shows how strongly investors and occupiers are looking at the office sector today.
By first quarter of 2026, he said the market had started to move into a more measured phase. Rents remain around 14% higher year-on-year, but growth is beginning to stabilise after a very strong cycle. To me, that is a healthy sign. “It suggests that the market is maturing and becoming more structurally driven, supported by business formation, economic growth, and long-term occupier demand rather than short-term momentum alone.”
Positive Outlook
Dhar said the outlook remains positive for the UAE’s office property sector over the next five years, particularly in the context of evolving work models and economic diversification.
“A significant pipeline is expected between 2026 and 2030, particularly across areas such as DIFC, Business Bay, Meydan, and JLT. On the demand side, the fundamentals remain strong. The UAE’s non-oil economy continues to grow, with sectors such as financial services, technology, logistics, consulting, manufacturing, and private wealth management creating real demand for commercial space.
“We see strong long-term potential in this segment as well and we are preparing to launch our first premium commercial development in second quarter of 2027. We believe the next phase of the office market will be driven by higher-quality, experience-led spaces that align with how businesses want to operate and grow today.”
He said the UAE is also taking a different path from many Western markets when it comes to hybrid work. “Flexible working exists, but companies here still see the office as central to culture, brand, collaboration, and client engagement. The office is not disappearing; it is becoming more intentional. Over the next phase, I expect occupiers to focus more on quality, flexibility, sustainability, wellness, location, and overall experience of the workplace.”
Primary Growth Catalysts shaping the office market today, both in terms of demand drivers and structural shifts in the economy?
Dhar said the biggest catalyst shaping the office market today is the continued growth of the UAE as a place where businesses want to set up, scale, and stay.
He said Dubai Chamber recorded more than 71,000 new companies joining in 2025, and that directly feeds demand for office space.
“In first quarter of 2026, around 97% of office transactions in Dubai were for spaces below 3,000sqft, which tells us a lot about the market. Demand is being driven strongly by startups, SMEs, entrepreneurs, and companies expanding their regional footprint.”
Another important driver is that companies are becoming far more selective about the kind of office space they choose. Prime office space remains limited in many core business districts, so occupiers are becoming more deliberate about where they locate themselves. For many companies, the office is now part of how they attract talent, build culture, and present themselves to clients.
Economic diversification is also playing a major role. The market is benefiting from growth across financial services, technology, consulting, logistics, family offices, and professional services, rather than relying on one dominant sector.
Regulatory reforms are adding further support. Policies that make it easier for companies to operate across free-zone and onshore structures are expanding the occupier base and making the UAE even more attractive as a long-term business destination.
Influx of Ultra HNWIs
Dhar opined that the inflow of wealth and entrepreneurship into the UAE is definitely translating into demand for premium commercial assets, but in a very specific way.
The UAE attracted around 9,800 new millionaires in 2025, according to Henley & Partners, which was the highest net inflow globally. At the same time, Dubai has seen strong growth in family offices, private investment firms, advisory platforms, and entrepreneur-led businesses. These groups all need a physical base, but they are not necessarily looking for large traditional office floors.
“Their demand is usually concentrated in premium, well-located, highly serviced spaces, particularly in areas such as DIFC and other established business districts. They value proximity to banks, legal advisors, consultants, investment professionals, and other members of the wealth ecosystem.”
So, he said the impact is less about massive volumes of office absorption and more about supporting pricing resilience at the top end of the market. These occupiers are quality sensitive. They want privacy, service, prestige, accessibility, and strong building management.
“In that sense, the UHNWI and entrepreneur influx is deepening the premium office market. It is reinforcing demand for best-in-class commercial assets and helping position Dubai as a serious global hub for capital, enterprise, and private wealth.
Be Realistic about Risk
Dhar said the UAE office market remains very strong, but it is important to be realistic about the risks as the cycle matures.
“The first is affordability. After several years of sharp rental growth, some occupiers are becoming more cautious. First quarter of 2026 showed signs of rental stabilisation, which suggests tenants are starting to push back against continued increases, particularly in prime and Grade A spaces.
“The second risk is supply. A large amount of office stock is expected over the coming years, but not all supply is equal. Some new projects may be strata-owned or located outside core commercial districts, which may not fully meet the needs of larger corporate occupiers. This could create a mismatch where headline supply increases, but the right type of institutional-grade space remains limited,” he said.
