The luxury office markets in Riyadh and Dubai are witnessing a frantic race among regional and international companies to reserve strategic locations with high-end specifications, as headquarters become a competitive tool that reflects the strength of the brand. With Class A space filled to near-full levels, investors and tenants are turning their attention to new developments, reflecting a dynamic real estate market that continues to break sales and rental records.
The Riyadh and Dubai markets are also experiencing a frenzied race to secure strategic locations with high-end specifications, as major headquarters become a competitive tool that reflects the strength of the brand. premium office markets in Dubai and Riyadh are also witnessing a strong surge in demand, driven by the desire of companies to consolidate their distributed locations into larger and more sophisticated regional headquarters, which has pushed occupancy rates in luxury properties to near-full levels, according to reports by global real estate consultancies.
According to an analysis by a global real estate consultancy firm, Office According to an analysis by Knight Frank, demand for larger and more expensive office space in Dubai has increased, especially in core areas such as the Dubai International Financial Center (DIFC) and Business Bay.
According to an analysis by Knight Frank, demand for larger and more expensive office space in Dubai has increased, especially in core areas such as the DIFC and Business Bay. Adam Wen, head of the firm's commercial agency, explained that existing luxury spaces are nearly full, prompting major corporations to turn to new developments to consolidate their regional operations into more efficient and quality work environments.
Adam Wen, head of the firm's commercial agency, said
Demand for luxury real estate in Riyadh
<Riyadh's real estate market is seeing strong demand for luxury offices, with Savills reporting that half of all commercial deals between April and June 2025 were related to space expansion. Lease enquiries for spaces larger than 1,000 square meters rose to 50% in Q2, up from 28% in the previous quarter, while nearly a third of requests involved spaces larger than 4,000 square meters.Industry analysts believe that this trend reflects the growth in employee numbers and the continued expansion of business volumes, necessitating the need for larger and better-equipped office spaces.
We believe that this trend reflects the growth in employee numbers and the continued expansion of business volumes.
Record growth in Dubai sales and rentals
<Dubai witnessed a sharp jump in luxury office deals, with the number of deals worth more than AED 10 million during the first half of 2025 exceeding 83 deals, compared to only 27 deals in the same period of 2024. According to ValuStrat data, around 800 sales transactions were recorded between April and June 2025, a year-on-year increase of 25.4%.<The average price per square foot reached a record high of AED 1,841, achieving a year-on-year growth of 35%, while average asking rents in the second quarter increased by 30% compared to 2024 and by nearly 70% compared to 2023. Prestigious areas such as DIFC and Business Bay maintained the lead in prices, especially for spaces between 1,000 and 2,000 square feet.
The Savills report noted that the average asking rents increased by 30% compared to 2024, and by nearly 70% compared to 2023. <Savills" July 24th report indicated that 44% of client enquiries in Dubai during the second quarter were for office space between 10,000 and 20,000 sq ft, compared to only 38% for space below 10,000 sq ft. Toby Hall, Head of Commercial Agency at Savills Middle East, commented: "There are clear indications that businesses are committed to staying in Dubai, as they continue to move towards larger spaces."
Toby Hall, Head of Commercial Agency at Savills Middle East, commented.
Future Supply Outlook
<Knight Frank expects Dubai to add around 16 million square feet of office space by 2030, more than 7 million of which will be in the Dubai International Financial Center (DIFC) alone. In the near term, between the end of 2025 and the first quarter of 2026, about 1 million square feet of new office space is expected to enter the market, according to Savills' estimates, while ValuStrat's data suggests the figure could reach 2.5 million square feet.But real estate experts expect Dubai to add about 16 million square feet of office space by 2030, with more than 7 million of it in the DIFC alone. But real estate experts caution that the impact of these additions on relieving pressure will not be seen immediately upon delivery, but rather after tenants have moved in and older properties have been repositioned.
In Riyadh, the market is likely to see up to 1 million square feet of new office space, according to Savills.
In Riyadh, supply is likely to begin to improve by the end of 2026 with the completion of some 9.7 million square feet of luxury office space, Savills forecasts.
