Demand for Premium Office Spaces in Dubai Rises This 2025
The global serviced office market, valued at approximately $26 billion in 2023, is projected to grow at a compound annual growth rate (CAGR) of 8.5% up until 2027, reflecting a steady demand trajectory into 2025 and beyond.
This trend is also clearly evident in Dubai, where the demand for premium office spaces is on the rise–thanks to an increasing number of companies in the UAE returning to face-to-face work and many overseas companies wanting to set up operations in the country.
As more companies are turning to flexible working solutions as part of their initiatives to improve employee satisfaction and keep up with the demands of the workforce when choosing a company, serviced offices are expected to become a staple in the commercial real estate sector.
Factors Driving Demand for Premium Office Space in Dubai
In 2025, this growth is expected to be fueled by evolving work cultures and the need for cost-effective work solutions in a premier business centre in Dubai.
The prediction has been influenced by many other factors, such as technological advancements, changing corporate cultures, and the increasing need for agile workplaces that encourage collaboration and innovation.
The ongoing urbanisation trend will also drive demand as businesses seek prime locations, such as One Central Dubai, with premium amenities without the hassle of committing to long-term leases.
As businesses continuously adapt to a post-pandemic world, the focus of a traditional workspace is shifting to a hybrid work model, where a blend of remote and office work is favoured. This requirement is seen to strengthen further the demand for premium serviced offices that can cater to various needs with fully-equipped facilities.
Shorter and More Flexible Leases Preferred
Demand patterns show an interesting preference towards shorter and more flexible lease agreements with premium serviced offices that incorporate sustainable features and advanced technology. This is to keep up with their flexibility and scalability requirements while also reflecting their corporate image.
Similarly, the need for flexibility and high-quality office environments is driving competitive bidding for Grade A or premium serviced office spaces like in One Central Dubai, as businesses are eager to secure prime locations that offer both functionality and prestige.
The strengths of Dubai’s commercial real estate market, which includes premium office spaces, stem primarily from well-established economic developments and calculated urban planning schemes, like the Dubai 2040 Urban Master Plan.
2025 is expected to bring in more investments in infrastructure and efforts to attract foreign investors within the commercial real estate market in Dubai, which will support the demands for premium office spaces.
Seen as A Thriving Hub for Networking and Professional Growth
Another primary contributor to the growing demand for premium serviced offices in Dubai stems from the increasing emphasis businesses place on wanting to operate within a thriving ecosystem that encourages meaningful networking opportunities.
Serviced offices located in prime locations offer the exclusive benefit of connecting with like-minded professionals. Especially in a city like Dubai that attracts a mix of talent and enterprises from all corners of the world, these revolutionised workplace solutions offer more than just a place to work. They create an ideal environment that encourages networking and collaborations effortlessly.
The majority of the premium serviced office providers in Dubai operate business centers that provide many versatile options to host events, gatherings, and coworking. They also organise professional workshops where members can engage with experts in a given niche or market.
For startups, this presents a valuable opportunity to meet investors, freelancers, clients, and potential partners.
Most importantly, Dubai’s recognition as one of the top 10 FinTech hubs in the world provides fertile ground for professional growth. The city’s booming tech sector also gives attractive prospects to leverage the latest market trends.
Rising Occupancy Levels Tightens Market
As demand for premium office space is expected to rise and outstrip supply, occupancy levels in Grade A office spaces are projected to climb steadily. It is predicted that by the end of 2024, the rate for premium serviced offices can reach up to 95%, getting closer to full occupancy by 2025.
These local occupancy levels in key business centres in Dubai are considered remarkable compared to global markets, where they are considerably low.
Furthermore, the ripple effect of high demand is expected to extend to Grade B and Grade C spaces, pushing citywide occupancy levels to unprecedented heights.
Trends to Takeover Premium Serviced Offices in 2025
- Sustainability
The sustainability era, which has received increased awareness for the past few years, will continue to reflect initiatives in serviced offices and commercial real estate in general. 2025 will most likely showcase progress toward achieving the established green goals in workspaces.
- Biophilic Design
Premium serviced offices will see an increased emphasis on biophilic design concepts, opening ways to liven and freshen up work environments. The natural elements are expected to mimic the calming effects of nature, creating an environment that promotes relaxation, focus, creativity, and overall productivity.
- Integration of Smart Technology
The integration of AI will enhance the capacity of smart technology to improve efficiency in working environments and upgrade customizability. This innovation will not only upgrade the overall working experience of tenants but also make the Dubai serviced offices and workplace solutions among the most modern ones in the world.
- Employee Well-Being
Serviced offices and, in general, 2025 work solutions will continue to focus on employee welfare, aiming to construct healthier and more stimulating workspaces. As a new combination of modern workspace concepts, employees can expect to see the addition of quiet areas for resting and de-stressing.
- Space Utilization
The rise in demand for premium serviced offices in Dubai in 2025 is expected to exceed supply, pushing prices high, especially in urban centers like Dubai. The offices of the future 2025 will showcase inventive ideas for optimizing spaces to improve efficiency, reduce clutter, and make limited spaces more adaptable.
The Executive Centre’s Premium Office Space in Dubai
The serviced offices at TEC, located in two prime locations in Dubai and Abu Dhabi, give exclusive access to address different levels of scalability with the option of flexible lease terms.
Whether you are a burgeoning startup or a well-established enterprise, TEC provides the ideal environment for your business to thrive. Easily adapt to your changing business needs with flexible lease terms and enjoy prestigious addresses that enhance your company’s image. Foster creativity and productivity in inspiring workspaces designed for modern businesses and experience premium amenities that meet the highest standards for comfort and functionality.
As a pioneer provider of workspaces in the UAE, they have fully recognized and understood the interesting demand patterns forecasted for 2025 and are confident in catering to this trend with premier facilities that satisfy the highest standards for modern businesses and professional workplace requirements.
