UAE Office Space Costs: Step-by-Step Guide to Save Big!

UAE Office Market 2025: High Transactions and Low Vacancies – A Quick Overview

Good news for those interested in investing in the UAE office market! The UAE’s office market in 2025 is showing signs of both stabilisation and growth.

In Dubai, demand continues to outpace supply, with shortages expected until at least 2027–2028. Leasing activity increased year-over-year in Q1 2025, driven by robust foreign investment, sector diversification, and stable population growth.

Demand for quality spaces (especially in prime locations) remains intense, creating attractive opportunities for investors. JLL reports that low vacancies and rising rents are prompting tenants to renew leases quickly, while landlords are substantially increasing quoted rates, thereby widening the gap between asking prices and tenant expectations.

Additionally, Abu Dhabi has reported a drop in city-wide vacancy rates to 2.3% in Q1 2025. Prime and Grade A offices are even tighter, at 0.9% and 1.5% respectively. Dubai’s overall vacancy rate fell to 8.6%, but in prime districts, availability has nearly vanished, with rates as low as 0.2%.

Simultaneously, Arab News reports that office market activity surged in the first half of 2025. Dubai saw a 207% jump in high-value transactions, recording 83 office sales worth over AED 10 million ($2.7 million) each, compared to just 27 in the same period last year.

Abu Dhabi’s leasing requirements exceeded 50,000 sq. m, a 110% year-on-year increase, as corporate expansions drove demand. Business services led the charge with a 32% share of requirements, followed by government entities at 9%.

With Grade A occupancy near full capacity across both cities, rents are climbing in prime locations. Landlords are upgrading older towers and launching new premium developments to meet rising demand.

Dubai’s rental activity also rose 9.3% quarter-on-quarter as businesses rushed to secure quality space (Kaizenams UAE Property Market Report, 2025). Combined with pro-business reforms such as streamlined setup rules and long-term visas, the outlook for UAE office demand remains strong well into the future.

Suggestive Read: Why is Dubai’s Office Market Growth Booming in 2025?

The Bottom Line: For businesses and investors, it is advisable to act quickly and plan effectively. Tenants need to secure the right space early to avoid rising costs, while landlords and investors have a strong opportunity to capitalise on high demand and limited supply.

How Much Do Office Spaces Cost in the UAE?

Office rental prices in the UAE vary widely depending on location, size, and amenities. In 2025, at the entry level, office space cost in the UAE is AED 3,000 per year for 110 square feet. On the other hand, daily rentals start at AED 200. Monthly rentals of office spaces in the UAE begin from AED 1,000 and can average around AED 17,000, while yearly rents start at AED 5,000 and average approximately AED 374,000.

In Dubai, the average annual rental price is approximately AED 314,211, but costs vary significantly across neighbourhoods. Most of the spaces start at AED 42,000 per year, while premium offices in prime areas can reach AED 14 million annually. This wide range allows businesses to select spaces that align with their specific needs and budgets. Many office packages include amenities such as building lobbies, conference rooms, covered parking, in-building dining options, and robust network infrastructure.

Beyond base rent, businesses should also factor in service charges, utilities, and parking fees. According to QIC Realty, Dubai's occupancy rate reached 92% in 2024 and is expected to climb above 94% by the end of 2025. Rents already surged 22% year-on-year in 2024 and are forecasted to rise by another 10–12% in 2025, driven by foreign companies and new market entrants.

Prime locations, such as Downtown Dubai and the DIFC, command annual rates of between AED 100 and AED 250 per square foot, while more affordable areas, including Deira and Al Qusais, start at AED 40 per square foot.

How are Flexible Office Spaces More Affordable than Traditional Offices in the UAE?

Flexible office spaces are more affordable in the UAE because they eliminate long-term leases, large deposits, and hidden operating costs.

First, think about the initial payment. A traditional office often demands a massive deposit, advance rent, and fit-out costs. With a flexible office, you just pay a simple monthly fee and you’re in.

Next come the extra bills. Traditional leases often include additional expenses for utilities, internet, cleaning, and even furniture. Flexible offices roll all of these into one package, so you don’t need to juggle multiple payments.

Then there is scalability. Traditional leases lock you in for years, even if your team size changes. Flexible offices allow you to start with what you need. You may just need a desk today and then expand or contract later without incurring penalties.

Location is another significant factor. Securing a space in DIFC or Downtown Dubai can be costly with traditional leases. Flexible offices give you the same prestigious address for a fraction of the cost.

Finally, think about budget clarity. With everything included in one price, you avoid surprises and can plan your finances confidently. Additionally, many providers offer limited-time discounts and promotional offers, so if you time it right, you can secure premium spaces at even more favourable rates.

Want to learn more about the increasing popularity of flexible offices? Read about the evolution of workspaces, from traditional setups to flexible collaborative environments.

So, flexible office spaces are not just affordable, but also smarter, easier, and better for growth.

Don’t miss the limited-time discount offers available at Office Hub. Book a tour now and grab your spot!

What are the Different Price Ranges of Office Spaces in the UAE?

Office spaces in the UAE are priced differently based on their building grade, location, and amenities, with Grade A commanding premium rents and Grade B and C offering more budget-friendly options.

• Grade A: These offices are situated in prime business hubs, including Downtown Dubai, DIFC, and Abu Dhabi Global Market. They offer state-of-the-art facilities, high-quality finishes, advanced technology, and prestige addresses. Rental rates here typically range between AED 100 and AED 250 per square foot annually, depending on the tower and demand.
• Grade B: These offices are slightly older buildings or those outside the core CBD, such as parts of Business Bay, Deira, or Al Qusais. They still offer good infrastructure, but at lower costs, averaging AED 60–100 per square foot annually. 
• Grade C: These offices, often located in secondary areas or older buildings, are the most economical, with rates starting from AED 40–60 per sq. ft. annually, making them attractive for startups, SMEs, and companies prioritising affordability.

Price Comparison of Different Types of Office Spaces in the UAE

Before we dive into price comparison, let’s share a little secret: enterprise offices are the priciest. They are designed for larger teams with heavy privacy requirements and comprehensive infrastructure.

On the other hand, virtual offices are the most affordable. They don’t provide a complete physical workspace, but they still offer business addresses, access to meeting rooms, and a virtual receptionist.

Isn’t that interesting? Let’s explore what different types of office spaces in the UAE cost and what they include in their packages:

Virtual Offices

Virtual offices are the most cost-effective option, ideal for startups, freelancers, and businesses that need a professional presence without a physical workspace. They provide a registered business address for licensing purposes, mail handling, and access to meeting rooms on an as-needed basis.

The cost of virtual offices in the UAE averages around AED 350 to AED 1,250 per month.

What's included in the rental package of a virtual office?

• A prestigious business address for your trade license and bank account.
• Mail and courier handling.
• Access to shared meeting rooms (often for a limited number of hours per month).
• Call answering services and virtual receptionists.

Coworking Spaces

Coworking spaces offer a flexible and collaborative environment. They are ideal for freelancers, small teams, and entrepreneurs who require a desk in a shared office with shared facilities. Pricing is typically per person and often includes utilities and basic amenities.

The cost of coworking spaces in the UAE averages around AED 1,000 to AED 3,500 per person per month. 

The hot desk (first-come, first-served) price typically starts at AED 1,000 per month, and the dedicated desk (a permanent desk for your exclusive use) price ranges from AED 1,500 to AED 3,500 per month.

What's included in the rental package of coworking space?

• A desk in an open-plan office.
• High-speed Wi-Fi, utilities, meeting room access, and air-conditioned areas.
• Access to communal areas like lounges, kitchens, and sometimes cafes.
• Opportunities for networking and community events.

Private Offices

Private offices are self-contained, fully furnished offices within a serviced business centre. They offer privacy and security for a team while providing access to shared amenities like reception services, meeting rooms, and IT support. The price is typically all-inclusive and billed per month.

The cost of private offices in the UAE averages around AED 3,000 to AED 15,000 per month for a small to medium-sized office. Prices can go significantly higher for larger offices or prime locations.

What is included in the rental package of a private office?

• A lockable office space for your team.
• Furniture (desks, chairs, filing cabinets).
• Utilities, cleaning, and maintenance.
• Reception and administrative support.
• Access to shared facilities, such as meeting rooms and business lounges.

Enterprise Offices

Enterprise offices are unfurnished, leased spaces that a company rents directly from a landlord, usually for a period of one or more years. The tenant is responsible for all fit-out, furniture, and ongoing operational costs.

The cost of enterprise offices in the UAE averages around AED 40 to over AED 350 per square foot annually.

What's included in the rental package of the enterprise office?

• Fully furnished part or full-floor occupancy.
• Exclusive access to fully equipped meeting rooms.
• Complete privacy (no outside access to your space).
• Expansive, scalable, and dedicated space.
• Personalisation options (branding, layout, decor).

What Factors Affect the Price of Office Spaces in the UAE?

The price of office spaces in the UAE is shaped by a mix of location, building grade, amenities, lease flexibility, and market demand, making it essential for businesses to weigh both short-term costs and long-term value before committing.

Curious to see which factors play the most significant role in shaping rental costs across the Emirates? Keep reading below as we break down the key drivers that determine what you will pay for your ideal office space.

• Location and prestige of the address: Offices in prime areas, such as Downtown Dubai, DIFC, or Abu Dhabi’s Corniche, command higher prices due to their visibility, reputation, and proximity to top businesses.
• Size of the office and layout flexibility: Larger floor areas and spaces that allow custom layouts are priced higher, as they cater to growing teams and enterprise needs.
• Building grade and quality of infrastructure: Grade A buildings, featuring modern architecture, advanced security, and premium finishes cost more than Grade B or C options.
• Furnishings, fit-outs, and interior design: Ready-to-move offices with high-quality furniture, fit-outs, and décor attract a premium compared to bare shells.
• Included amenities (WiFi, utilities, cleaning, reception): Packages covering essentials like high-speed internet, electricity, cleaning, and front desk support often add to the overall cost.
• Access to meeting rooms and shared facilities: On-demand meeting rooms, conference facilities, and shared lounges can increase rental prices.
• Lease terms and contract flexibility: Short-term or highly flexible contracts tend to be more expensive than longer, fixed-term leases.
• Availability of parking for staff and clients: Dedicated parking in high-demand business districts is a valuable inclusion that can significantly raise costs.
• Proximity to public transport and key business districts: Easy access to metro stations, bus routes, airports, and highways enhances convenience and pushes up prices.
• Market demand and overall economic conditions: When demand is high and vacancy rates are low, rental prices rise accordingly, and vice versa.

How to Calculate the Office Space Cost in the UAE?

Calculating the cost of office space in the UAE is simpler than it looks once you break it down. The basic formula is:

Office Space Cost = (Rental Rate per sq. ft × Total Area Required) + Additional Costs (fit-outs, utilities, parking, service charges, etc.)

For example, if the rental rate in a Grade A building is AED 150 per square foot annually and your business needs 1,000 square feet, the base rent would be AED 150,000 per year. On top of this, you may need to factor in service charges, parking fees, or customisation costs, depending on the building and landlord.

To make the calculation more practical, always consider the number of employees and average workspace required per person (usually 80–120 sq. ft). This helps you avoid overspending on unnecessary space while ensuring comfort and productivity for your team.

Pro tip: Flexible and serviced offices already include utilities, internet, furniture, and cleaning in one package—making cost calculation much more straightforward and predictable.

Budgeting Tips for Renting Office Spaces in the UAE

Renting a flexible office space in the UAE can be costly if you don’t plan your budget smartly. From upfront deposits to hidden running expenses, costs can quickly add up. The good news is that, with the right approach, you can cut unnecessary spending and still secure a professional workspace that suits your business needs.

We present to you the secret budgeting tips that businesses adopt to save costs when renting office spaces in the UAE. Have a look at the below.

Plan for Deposits and Advance Rent

Traditional office leases usually demand hefty deposits and advance rent payments. If you are a startup or SME, consider coworking spaces that often reduce or eliminate these upfront commitments.

Watch Out for Hidden Costs

Utilities, internet, parking, and maintenance can increase your monthly expenses if not included. Serviced offices roll these costs into one package, making budgeting more predictable.

Start Small and Scale Up

Instead of committing to an ample office space immediately, start with a setup that matches your team’s current size. Flexible offices allow you to upgrade or downsize later without penalties.

Look for Discounts and Deals

Many providers, including Office Hub, offer promotional discounts or limited-time offers. These can significantly lower your rental expenses, especially in premium locations.

Don’t want to spend a lot without compromising on the quality of services office buildings offer? Checkout office spaces in the UAE offering discounted rates at Office Hub now!

Wrapping It Up

The UAE office market in 2025 has shown record-high demand, limited vacancies, and rising rents across Dubai and Abu Dhabi. For businesses, understanding the office space cost in the UAE means acting quickly, choosing the right type of office space, and planning costs carefully has never been more important.

From affordable virtual offices to high-end Grade A towers, there is an option for every budget, but understanding pricing factors, rental structures, and hidden costs is key to making a smart decision.

Serviced offices are proving to be the most practical choice for many companies, offering transparent, all-inclusive pricing, scalability, and access to prime locations without the need for a heavy upfront investment.

The best part? Limited-time discount offers are available through Office Hub. Reach out to us to avail the offer before it ends and become part of the growing business industry in the UAE.