Dubai’s Office Market Resurges: Off-Plan Commercial Sales Open Doors to Individual Investors
Dubai’s real estate sector continues to evolve as developers reintroduce off-plan commercial office spaces for individual investors, signaling renewed confidence in the emirate’s office property segment. This shift comes after years of developers primarily favoring rental models and institutional ownership over strata sales.
According to PP Varghese, Head of Professional Services at Cushman & Wakefield Core, this isn’t the first time Dubai has seen a wave of strata ownership in the office space sector. “There was a time when entire office buildings were sold off-plan. Over time, the model moved away from individual sales and focused on renting out buildings to corporate tenants,” he explained. “Now, we’re witnessing a shift back — commercial properties are once again being sold off-plan, similar to residential models.”
Varghese attributes this change to rising occupancy levels and robust investor demand. Occupancy rates for Grade A offices are hovering around 95%, reaffirming the health of the office real estate market. This performance has emboldened developers to return to the strata sale model and unlock quicker returns through unit sales, especially in Arjan and Motor City.
Revival of Strata Ownership in Fringe Markets
While prime commercial hubs like DIFC, One Central, and Dubai Design District (D3) remain largely occupied, the re-emergence of strata-based developments is most visible in fringe districts. These submarkets are now appealing to SMEs and first-time commercial investors, creating a broader investment base outside institutional players.
“From 2013 to 2015, confidence in the office sector dipped, leading to a decline in strata-based development,” said Varghese. “But the resilience seen in 2024 and 2025 has brought individual investors back into the game.” Developers are capitalizing on the opportunity to liquidate capital faster by offering small-ticket, investor-friendly commercial units.
Rising Rental Rates and Developer Incentives
The surge in demand has driven average rental rates to approximately AED 190 per square foot — marking a 22% year-on-year increase. In Q1 2025 alone, prime office rents saw a 14.2% increase, highlighting the upward trend. As vacancy rates shrink and lease renewals become more competitive, landlords are in a favorable position, often raising quoted rents substantially.
JLL’s recent market update noted that developers are not only building new commercial stock but also actively refurbishing outdated assets to meet modern office requirements. The strategic shift is further encouraged by a limited new supply pipeline in 2025 — only 0.89 million sq. ft. is expected to be delivered. However, over 6.4 million sq. ft. is under development for delivery in 2026–2027, primarily in Sheikh Zayed Road and other key corridors.
Why Off-Plan Commercial Makes Sense Now
From a return-on-investment (ROI) perspective, off-plan commercial sales offer developers faster capital recovery while giving investors access to a previously restricted asset class. Unlike leasing, strata sales generate upfront liquidity, which can be reinvested into new projects. For investors, these properties present opportunities to enter Dubai’s growing office market at relatively lower prices, with long-term leasing potential.
The rise in foreign direct investment (FDI), influx of global firms, and growing tech and startup ecosystem in Dubai continue to fuel commercial demand. Key sectors such as finance, IT, and logistics are rapidly expanding, leading to increased corporate setups and higher workspace requirements. Whether it’s Business Bay or Dubai South, the appetite for well-located Grade A office space remains strong.
What’s Next for Commercial Investors?
Dubai’s evolving regulatory landscape and proactive business environment are creating a fertile ground for individual investors in the office market. As more developers adopt flexible pricing, fractional ownership, and investor-focused amenities, the off-plan commercial model is expected to become more mainstream.
For investors seeking long-term rental income, resale potential, and capital appreciation, commercial units in emerging Dubai locations offer a new frontier for diversification. With entry points accessible to more buyers, strata office ownership might become the next big wave in Dubai’s real estate sector.
Explore available commercial developments and investment opportunities across Dubai’s thriving business districts with Aurantius Real Estate.
