Dubai’s office market sales values have soared by 84 percent year-on-year, with AED5.4 billion ($1.47 billion) worth of transactions across 1,900 deals in the first half of the year.
Sales transactions were up 22 percent on the same period last year amid unprecedented demand for commercial space – particularly in the prime office and logistics segments, according to Cavendish Maxwell’s latest Dubai Office Market Report for H1 2025.
“Dubai’s investment landscape continues to flourish, further cementing the emirate’s status as the UAE’s leading economic hub – and a global destination for business. In H1 this year, Dubai attracted more than 500 new FDI projects, securing over AED11 billion in capital inflows, while the DIFC registered more than 1,080 new businesses – a rise of 32 percent year-on-year,” said Vidhi Shah, director and head of commercial valuation at Cavendish Maxwell.
34,000 square meters of new office space delivered
Dubai delivered 34,000 square meters of new office space between January and June, with another 110,000 sqm estimated to come to the market by the end of 2025 – and an additional 340,000 sqm expected in 2026, by which time the total commercial space GLA is projected to reach 9.78 sqm, the report shows.
“With strong government backing and sustained, solid investor confidence, Dubai’s office market continues to deliver an outstanding performance, with yet more records for sales volumes and values. This strong momentum is expected to continue this year and beyond, with a wave of quality new supply further strengthening the market and offering buyers and renters more flexibility,” added Shah.
The report also shows that in H1 2025, office sales prices rose 22.2 percent year-on-year, to an average AED1,748 per square foot. Ready offices accounted for nearly 85 percent of sales transactions, with off-plan sales gaining ground.
Business Bay remained the top area for sales, followed by Jumeirah Lakes Towers. In addition, office rents were up by an average 26.4 percent- and by almost 35 percent in prime areas.
Office sales and rental prices rise
Office sales and rental prices in Dubai rose by an average of 22.2 percent and 26.4 percent, respectively, with sales prices reaching AED1,748 per sq ft and rental rates hitting AED166 per sq ft per annum. Compared to H2 2024, sales prices were up almost 13 percent, with rental rates rising 10 percent. With a healthy appetite among investors and occupiers, prices are expected to continue to rise.
Rental rates in prime districts like DIFC and Downtown Dubai surged by almost 35 percent and 33.5 percent, respectively, highlighting demand for quality space in Dubai’s most sought-after business hubs.
Some of the emirate’s more mature, traditional trading centers such as Bur Dubai, Deira and Healthcare City saw only modest rises of 3.8 percent, 2.6 percent and 2.2 percent, respectively – the result of older infrastructure, limited new supply and increasing investor preference for A-grade facilities, enhanced amenities and better access.
Off-plan demand grows
While the ready office segment continues to dominate Dubai’s office market, accounting for almost 85 percent of transactions, investors are increasingly buying into the off-plan sector. With an increased market share, off-plan sales grew almost 180 percent compared to H1 last year and 90 percent against H2 2024. The surge in off-plan investment is fuelled by strong demand for upcoming modern, innovation-led and ESG-aligned space.
In total, there were 1,900 ready and off-plan sales transactions worth AED5.4 billion in H1.
Dubai’s office inventory currently stands are 9.32 million square meters of gross leasable space and is poised for a steady increase in new deliveries to the tune of 110,000 sqm between now and the end of the year, and 340,000 sqm next year. Long-term forecasts show that another 1 million sq ft is due to come online in 2027 and 2028, by which time Dubai’s total GLA inventory could reach 10.85 sqm.
“While the development pipeline appears to be very robust, actual completion times may vary, meaning that occupancy rates are likely to remain high in the short term. The majority of upcoming supply is projected to hit the market between 2026 and 2028, when we can expect price pressure to ease on both sales and rentals,” Vidhi Shah said.
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Top 5 areas by transaction volume
Across Dubai’s office market, Business Bay kept its number one position for transactions, with a total of 672 ready and off-plan sales deals between January and June.
In second place was Jumeirah Lakes Towers with 534 transactions, followed by Motor City at 216, Barsha Heights at 160 and Dubai Silicon Oasis at 77 transactions.
Offices spanning 1,000 to 2,000 sq ft accounted for almost half of all sales transactions, with areas of less than 1,000 sq ft taking a 39 percent share. Meanwhile, 12 percent of investors secured spaces between 2,000 and 5,000 sq ft, with 2 percent taking 5,000 sq ft or more.
