Dubai office sales double to Dh13.1 billion in strongest year since 2014

Dubai: Dubai’s office market recorded its strongest performance in more than a decade in 2025, with total sales values more than doubling to Dh13.1 billion amid strong demand from investors and businesses seeking limited high-quality space.

Transaction volumes rose sharply, climbing 53% to around 4,600 deals during the year, according to Cavendish Maxwell’s latest office market report.

The surge reflects sustained demand driven by business expansion and economic growth, and by the constrained supply of premium office stock across the emirate.

Prices and rents climb sharply

Office sales prices averaged Dh1,951 per square foot in 2025, up 26% year over year, while rents rose by an average of 23% citywide and climbed above 30% in several prime locations.

Strong demand, combined with limited new supply, has tightened occupancy levels, particularly in central business districts, where Grade A stock remains scarce.

“Dubai’s office market performed exceptionally in 2025, with surging prices, record transactions and robust rental growth against a backdrop of strong economic fundamentals and persistent supply constraints,” said Vidhi Shah, Director and Head of Commercial Valuation at Cavendish Maxwell.

Off-plan demand surges

Off-plan office activity recorded one of the most significant shifts in the market, with sales rising almost sevenfold compared with the previous year.

The segment accounted for around 35% of all transactions, up sharply from just 10% a year earlier, driven by competitive pricing, flexible payment plans and a shortage of ready office space.

Total off-plan sales values climbed to Dh4.6 billion, compared with Dh700 million in 2024, reflecting growing investor interest in future supply.

Limited supply continues to support the market

Only about 87,000 square metres of new office space was delivered in 2025, representing less than half of the originally projected pipeline.

Dubai’s total office stock reached roughly 9.4 million square metres, with future supply expected to remain constrained despite additional developments planned for 2026.

“With high quality office stock still severely constrained, buyers will be looking for viable entry points to the market through new off plan premises,” Shah said.

Key locations drive activity

Business Bay and Jumeirah Lakes Towers recorded the highest number of ready office transactions, accounting for more than 70% of deals, while Motor City led the off-plan segment.

Prime areas, including DIFC and Downtown Dubai, saw the steepest rental increases, driven by limited availability and strong demand from companies seeking central locations.

Market conditions are expected to remain supply-limited in the near term, with sustained demand likely to continue supporting prices and rental growth across Dubai’s office sector.