If you’re trying to find a prime office in the UAE right now, you’re in for a challenge. For landlords, it's a golden age, but for everyone else, it's a scramble. After a massive 2023 where Dubai saw over AED 411.74 billion in property deals, the heat has rolled right into 2025. Prime office space is becoming incredibly hard to find.

A huge wave of companies wants in, but there’s almost no space left. This mismatch has sent rental prices through the roof, putting property owners firmly in control.

In Abu Dhabi, the numbers are wild. Prime office rents have shot up by a massive 31.5 percent in just a year, hitting an average of AED 2,905 per square meter. The city’s overall vacancy rate? A tiny 1.5 percent. Finding an available spot is next to impossible.

Dubai is feeling the same pressure. Rents for its best offices jumped 17.3 percent, and the price hikes are happening across the board. While the citywide vacancy is higher at 7.7 percent, the most sought-after locations have virtually no availability. This has kicked off some fierce competition for any new or expanding business.

So, Where is Everyone Working?

With the best office towers essentially full, how are businesses managing to operate in this tight market?

They are getting creative. Traditional leases are off the table for many. Instead, companies are turning to premium flexible workspaces or high-end co-working hubs. These offer a great address without the long-term cost and commitment. Others are playing the long game, signing leases in secondary business districts now to lock in rates before those prices inevitably climb.

This is more than just a hunt for desks; it's a strategic fight for a foothold in a major global economy. As an expert from the leading Dubai firm Falcon Properties Group puts it, this isn't just about a fancy address. "It's about strategic access to top-tier talent and a world-class business ecosystem, making every square foot a fiercely contested strategic asset."

Why Aren't They Just Building More?

The simple answer is that new supply is barely making a dent. Only about 98,000 square meters of new office space is expected across both Dubai and Abu Dhabi this year, which is nowhere near enough.

This isn't an accident. For years, urban planning has favored iconic, mixed-use developments over simple office parks. Add in some potential construction delays and a major focus on building ultra-luxury projects, and you get a real shortage of new, quality office stock. The result is a bidding war for what's already there.

This power dynamic isn't just in offices. The retail sector is a landlord's market too.

Dubai saw a healthy 9 percent annual increase in retail contracts.
Abu Dhabi’s prime mall rents grew by 3.4 percent.
Dubai's prime mall rents climbed by an impressive 15.1 percent.

For investors and landlords, things have rarely looked better. For businesses trying to get in or grow, the path forward is clear. Being creative, flexible, and quick to act is the only way to survive.