Dubai offices cross Dh5,130 per square foot as big-ticket deals double in prime districts

Dubai: Office values across Dubai’s main business districts continued to rise in 2025, led by Downtown Dubai where average sales prices reached Dh5,130 per square foot, up 29% from Dh3,986 a year earlier, according to Knight Frank.

High-value transactions increased sharply, with 167 office deals above Dh10 million completed during the year, a 114% increase on 2024, pointing to sustained investor demand for income-generating assets in established locations.

“Dubai’s office market has firmly established itself as one of the most dynamic and resilient in the region, with investors increasingly focused on well-located, income-generating assets," said Faisal Durrani, Partner and Head of Research for MENA. "The near-tripling in Dh10 million+ transactions between 2023 and 2025 underscores the depth of capital targeting Dubai and reflects a strong belief in the city’s long-term economic and real estate fundamentals.”

Occupiers are expanding and paying higher rents for efficient layouts and well-connected locations. Buildings with metro access and strong surrounding amenities continue to command a premium.

“Assets are operating at or near full occupancy with very limited vacancy and, as demand continues to outpace supply, both capital values and rents have naturally increased quarter-on-quarter and year-on-year, a trend that has persisted since 2020,” said Adam Wynne, Partner and Head of Commercial Agency for the UAE.

Banking and finance accounted for 32.5% of office demand in the second half of 2025, while technology contributed 23.1%. Both sectors are concentrated in grade-A space in core districts, supporting pricing in prime locations.

“The diverse sectoral demand mix is reinforcing the shift towards high-quality, efficiently designed space that can support talent attraction, client engagement and modern workplace strategies,” Durrani noted.

Around 24.2 million square feet of office space is scheduled for delivery between 2026 and 2030. New supply is concentrated in Business Bay, Meydan City, DIFC and Jumeirah Lake Towers.

DIFC has a pipeline of 7.7 million square feet to 2040, largely structured for leasing. Business Bay’s pipeline is focused on sales, offering investor access in a central location.

Vacancy levels remain low, with demand absorbing available space. Attention is on how incoming supply will affect pricing.

Wynne said, “Looking ahead, we do not anticipate any significant shift in market dynamics in the short term until the next wave of supply outlined in this report hands over.”

He added that demand will continue to favour single-owned, well-managed buildings, with a wider gap expected between prime and secondary assets.