Dubai Office Market H1 2026: Rents Up 13%, Grade A Up 16%, Occupancy at 94%

The first half of 2026 split Dubai's property market in two. Residential fell — sale prices down about 2.6%, rents down 9.5%. The office segment kept growing over the same period.

The office numbers

• Average office rent — +13% over the period.
• Grade A — +16%.
• Occupancy — around 94%.
• New Grade A supply remains scarce, delivered one building at a time.

Why the two segments diverged

The reason is the source of demand. Residential rent depends on the inflow of individuals and is sensitive to sentiment: a person can postpone a move, move in with relatives, choose a cheaper unit. Office rent depends on companies with a licence, staff and a three-to-five-year lease. A company doesn't "postpone" its office — it either operates or closes.

The second reason is supply. Housing saw a record number of launches in recent years, and part of that pipeline is landing on the market right now. Offices saw few launches, and new quality space still appears one project at a time.

What this means for an investor

• Diversification within the market works. A portfolio split between residential and commercial in the same city behaves differently in the same cycle — the half-year numbers show it directly.
• 94% occupancy with rising rates means the landlord is setting the terms, not accepting them.
• The window is narrow. The same shortage of new supply is what makes every new Grade A launch a market event — and it's also what means the picture will look different in a few years.

Based on Dubai office market reviews for H1 2026 and Property Finder's H1 2026 residential report.