🏢 The Return of Strata Sales in Dubai’s Office Market
Dubai’s dynamic real estate landscape is witnessing a notable comeback — developers are once again selling commercial office space to individual investors. Once reserved for institutional buyers or rental models, off-plan office units are now making their way back to the portfolios of private investors and SMEs alike.
This revival reflects a shifting investor sentiment and rising demand across Dubai’s office market, particularly in fringe submarkets like Arjan and Motor City, where off-plan commercial opportunities are regaining momentum.
📈 Why Are Developers Returning to Strata Sales?
“There was a time when entire office buildings in Dubai were sold off-plan,” says PP Varghese, Head of Professional Services at Cushman & Wakefield Core. “Over time, the model shifted toward rental-only developments. But now, we’re seeing a return to the earlier trend — selling individual office units to investors, much like residential properties.”
According to Varghese, renewed investor confidence and robust occupancy rates between 92% and 95% for Grade A offices have helped fuel this resurgence. Developers are also seeing financial benefits: by selling office space off-plan, they can recoup capital faster and improve ROI, making it a lucrative model once again.
🔄 A Market Rebound Post-Downturn
Following the global economic downturn in the past decade, developers largely held on to entire commercial properties, leasing space to corporate tenants. However, the market has since shown significant resilience, prompting developers to reintroduce strata-based inventory — especially for small and medium-sized enterprises (SMEs) looking for ownership rather than long-term leases.
While this model supports the needs of smaller investors, it doesn’t solve the shortage of institutionally owned Grade A stock, which remains highly sought after by global corporations and institutional investors.
📊 Demand Driven by Local Startups & Global Players
Dubai’s strategic location, business-friendly environment, and investor confidence have positioned the city as a prime hub for international businesses and startups.
According to reports from Cushman & Wakefield Core and JLL:
Key districts like DIFC, One Central, Sheikh Zayed Road, and Dubai Design District (D3) are nearing full occupancy
Average office rents have surged to AED 190 per sq. ft., reflecting a 22% year-on-year increase
Prime office rents rose by 14.2% in Q1 2025, showing strong growth
Developers are actively refurbishing outdated assets to tap into the current supply-demand gap
JLL notes that landlords are now in control, pushing up quoted rents and creating a widening gap between asking prices and tenant expectations — a sign of a tight, landlord-favored market.
🏗️ What’s Ahead for Dubai’s Office Supply?
While only 0.89 million sq. ft. of new office space is expected in 2025, the commercial pipeline expands significantly in 2026–2027, with over 6.4 million sq. ft. under development.
Much of this upcoming supply will focus on Grade A specifications in prime districts, addressing growing demand from international firms seeking premium business environments.
💡 The Bottom Line: An Evolving Commercial Landscape
With rising occupancy, growing rental yields, and a resurgence in strata sales, Dubai’s commercial real estate sector is undergoing a strategic transformation. Whether you’re a startup founder looking for your first office or an investor seeking rental income and appreciation, now is the time to explore opportunities in Dubai’s rebounding office market.
