Dubai’s commercial office market continues to show resilience despite ongoing geopolitical tensions, with demand from hedge funds, banks and other financial institutions underpinning occupancy and rental growth, according to a report by Bloomberg.
New office space at the Dubai International Financial Centre (DIFC) is being taken up by firms including Deutsche Bank and Moody’s, while Ken Griffin’s Citadel is fitting out new offices within the financial district as it expands its regional presence.
According to JLL, prime office rents in Dubai increased more than 17% in the first quarter of 2026, with vacancy rates remaining exceptionally tight at just 0.7%, highlighting continued demand for Grade A space.
DIFC Square, the financial centre’s latest office development, was fully leased before completion, largely by existing tenants seeking additional capacity to support growing headcounts. Deutsche Bank, which already has offices in the DIFC, secured extra space as part of its expansion plans.
Market participants say the regional conflict has had only a limited impact on leasing activity. Most occupiers hold long-term leases, while landlords have generally maintained headline rental rates, offering selective incentives such as rent-free periods and more flexible lease structures to complete transactions.
“We haven’t seen the commercial office market weakening, as only a handful of deals were cancelled,” Toby Hall, head of commercial agency at Savills Middle East, told Bloomberg, adding that activity recovered after an initial pause as tensions eased.
Dubai has become an increasingly important hub for global hedge funds, asset managers and investment banks in recent years, supported by business-friendly regulation and growing investment opportunities across the Gulf. The DIFC now employs more than 50,000 financial services professionals following a sustained post-pandemic expansion.
While geopolitical uncertainty persists, analysts say continued government investment across sectors including finance and artificial intelligence, together with limited supply of premium office space, should continue to support Dubai’s commercial property market.
