In Dubai, offices costing Dh10m plus are the next big hit

Dubai: The demand for pricey properties in the UAE is not limited to homes - offices with price tags of Dh10 million and over are selling just as well in Dubai.

There were 83 office properties that sold at more than Dh10 million in the first six months of 2025, which is an eye-popping 207% increase on the mere 27 such deals in H1-2024. This is according to data from the real estate consultancy Knight Frank.

The Downtown Dubai dominates, with average office prices going up to more than Dh5,000 per square foot - and 'significantly outpacing all other submarkets'.

Business Bay, which has seen 21.2% growth since 2020, remains the second most expensive submarket, with average prices topping Dh2,000 psf for the first time in H1-2025.

"Offplan sales – a key indicator of a healthy market – have also been increasing," the Knight Frank report adds.

"Largely concentrated in Business Bay, which is set to deliver more than 1.3 million square feet of office spaces through this model, the surge reflects the strength of investor confidence in purchasing office assets in the city’s prime financial hub."

When it comes to office leasing, at an average of Dh400 psf for fitted offices, the 'DIFC remains Dubai’s most expensive office location'.

The other submarkets to do well include The Greens (leases at Dj260 psf), the Dubai Design District (Dh280 psf) and Business Bay (Dh251 psf).

"The technology and trading systems sector has emerged as major driver of demand," said Faisal Durrani, Partner – Head of Research, MENA at Knight Frank.

The other sectors boosting rental demand for offices are in financial, real estate and business consulting firms. "Developers are moving quickly to capitalise on current demand, with a further 25.2 million square feet expected by 2030, when we forecast the total office stock in the city to approach 148 million square feet," said Durrani.  

Dubai's office rentals have been rising since 2023, and in some cases quite dramatically. Landlords have been helped by a scarcity of readily available Grade offices to lease. Waiting lists have built up steadily as well.

DIFC, for instance, had its 'busiest H1 period on record' when it comes to new company registrations since its opening in September 2004, according to Knight Frank. In all, there were 1,081 new registrations between January and June, which increased the total number of companies active in DIFC to 7,700.

"With existing grade-A space effectively full, large corporations are leveraging the new development pipeline to consolidate their regional operations into more efficient and higher-quality headquarters," said Adam Wynne, Knight Frank's Partner – Head of Commercial Agency.

"Strong demand from single occupiers for entire floors or buildings within the upcoming supply in hubs like DIFC and Business Bay points to this strategic move - global HQs seek modern buildings that align with corporate mandates.”