Dubai Ranks Seventh Globally for Prime Office Costs in Q3 2026
Dubai ranked as the world's seventh most expensive market for prime office space in the third quarter of 2026, with annual occupancy costs rising to $175.34 (AED 644) per square foot, according to global real estate consultancy Savills.
The emirate was the most expensive Middle Eastern market covered by the study. Dubai also surpassed Singapore, Zurich and Paris in the ranking of 47 international office markets.
Occupancy costs in Dubai increased by 1.6% from the previous quarter, driven by higher office fit-out expenses, Savills said in its Prime Office Costs Q3 2026 report.
An analysis of the report's findings by Al Masdar Al Aqaari showed that Dubai's prime office occupancy costs were 9.9% higher than Riyadh's and 8.3% above Singapore's, but remained 47.7% below London's West End, the world's most expensive office market.
Dubai Among World's Most Expensive Office Markets
London's West End topped the global ranking with annual occupancy costs of $335.08 per square foot, followed by Hong Kong at $246.20 and Tokyo at $229.81.
New York's Midtown district ranked fourth at $225.49, ahead of London's City district at $209.64 and Miami at $183.83.
Dubai followed in seventh place at $175.34, ahead of Singapore at $161.90, Zurich at $160.90 and Riyadh at $159.54.
While Dubai recorded a 1.6% quarterly increase, occupancy costs in Riyadh declined by 0.5%. Singapore registered a 1% increase, while Zurich remained unchanged.
What the Prime Office Cost Figures Mean
Savills' figures measure the annual cost of occupying space in the five most expensive office buildings in each market, rather than average office rents.
The calculations include rental expenses, office fit-out costs and leasing incentives, including rent-free periods, providing a more comprehensive measure of the cost companies face when securing high-end office space.
The study uses a standardized leasing scenario covering 20,000 square feet of usable office space, allowing comparisons across international markets.
Its findings focus on trophy and ultra-prime office buildings, which can command significantly different prices from the broader Grade A office market.
Global Prime Office Costs Rise 4.7%
Prime office occupancy costs increased by 4.7% globally in the third quarter of 2026 compared with a year earlier, while fit-out costs rose by 5.9%, according to Savills.
Costs increased in 30 of the 47 markets surveyed during the quarter, reflecting continued demand for high-quality office space and rising expenses associated with fitting out premium workplaces.
North America recorded the strongest quarterly increase at 2.5%, followed by Asia Pacific at 0.9% and Europe, the Middle East and Africa at 0.6%.
Savills said companies continued to favor high-quality offices in prime locations, concentrating demand in the most desirable buildings even as conditions varied across wider office markets.
Mumbai Leads Global Growth in Office Occupancy Costs
Mumbai recorded the largest quarterly increase among the markets surveyed, with prime office occupancy costs climbing 7.6% to $132.85 per square foot annually.
Costs in the Indian financial hub were 21% higher than a year earlier, supported by demand from multinational companies and a shortage of high-quality office space.
Prime office vacancy in Mumbai fell to just 1.1%, while rents in the city's five most expensive office buildings have almost doubled since 2019, Savills said.
New York's Midtown district also recorded a sharp increase, with occupancy costs rising 4.9% quarter-on-quarter and 13.7% year-on-year.
Vacancy in Midtown's trophy office buildings fell below 1.9%, compared with 17% at the end of 2024.
In Europe, Prague and Warsaw recorded quarterly increases of 4.5% and 4.2%, respectively, driven by higher rents and fit-out costs.
By contrast, Beijing recorded the largest quarterly decline globally at 3.4%, followed by Cairo at 2.5% and Shanghai at 1.9%.
Across mainland China's four markets included in the study, occupancy costs fell by an average of 0.7% quarter-on-quarter and 4.4% year-on-year, reflecting pressure from excess office supply and weaker demand.
Related Articles
