DUBAI —  Grade A office vacancy across Dubai has fallen to roughly 5%, with the financial core of DIFC, One Central and Downtown now operating at effectively zero availability, according to a new market intelligence brief released today by ultra luxury real estate firm K Estates.

The brief, prepared for K Estates' international client base of high net worth individuals and family offices, frames the figures as a leading indicator of a structural shift now visible across every Dubai real estate asset class.

Drawing on data from Savills, JLL, Cushman & Wakefield and Knight Frank, the brief identifies an undersupply that will persist into 2027:

  • A record 71,830 new companies registered with Dubai Chamber in 2025, with family offices, hedge funds and regional headquarters increasingly choosing Dubai over Singapore and Hong Kong.
  • 97% of Q1 2026 deals were for spaces under 3,000 sq ft, reflecting the fact that large floorplates are no longer available in the financial core.
  • Prime rents have risen 14% year on year to an average of AED 238 per sq ft, with DIFC now commanding AED 537.

The profile of incoming occupiers has shifted decisively upmarket. DIFC Square was 100% pre-leased ahead of its Q1 2026 handover — new supply absorbed before it physically existed. The number of hedge fund managers operating in DIFC has grown 200% year on year, with more than 100 funds now present and 81 managing over $1 billion in assets. Among them, Citadel — one of the world's largest hedge funds with $67 billion under management — has chosen Dubai for its regional launch.

"The 5% vacancy figure is not a real estate story. It is a confidence story," said Khaled El Sherif, CEO and Founder of K Estates. "71,830 new companies registered on Dubai's mainland alone in 2025 — before counting a single free zone. That is not a real estate statistic. It is a verdict. Capital, talent and entrepreneurship have made their choice. Dubai has moved from growth market to global capital, in the same conversation as London, Singapore and Geneva."

He added that the same imbalance shaping the commercial core is now visible across every prime residential asset class, from ultra luxury villas and Palm Jumeirah trophy properties to branded residences and off-plan launches at premium addresses. "Office vacancy is the leading indicator. Prime residential scarcity is the lagging one. Both are heading the same direction. For our clients, the question is no longer whether to be in Dubai. It is how to be positioned correctly when the next decade is written."

MEDIA CONTACT
Charline Abi Rached
charline@kestates.ae

About K Estates

Founded in 2022, K Estates is a boutique luxury real estate firm specialising in ultra-luxury properties, off-plan investments and bespoke advisory for high-net-worth individuals, from Dubai to Monaco, Cannes and beyond. Our team is handpicked not only for their expertise in luxury real estate, but for the values they embody: integrity, transparency, discretion and a genuine care for excellence.

In just a few years, K Estates has grown into a team representing 35+ nationalities and speaking more than 15 languages, enabling deep, intuitive connection with a truly international clientele. Through a culture of growth, collaboration and innovation, we deliver what discerning clients expect: not a sale, but a partner committed to trust, tailored solutions and long-term value creation.