Dubai office market hits 11-year high with $3.6bn sales, rents up 35% in DIFC
Dubai office sales values more than doubled to reach AED13.1bn ($3.57bn) in 2025, marking the sector’s strongest annual performance since 2014, according to leading real estate advisory and property consultancy Cavendish Maxwell.
According to Cavendish Maxwell’s 2025 Dubai Office Market Performance Report, transaction volumes, prices and off-plan activity all recorded sharp increases, underscoring robust investor and occupier demand.
Office sales values surged by 102 per cent compared to 2024, while transaction volumes rose more than 53 per cent to reach 4,600 last year, the report said.
Sales prices hit AED1,951 ($531) per square foot in 2025, up 26 per cent year-on-year.
Rents increased by an average 23 per cent across the city – and by well over 30 per cent in key areas.
Dubai office market
Vidhi Shah MRICS, Director, Head of Commercial Valuation at Cavendish Maxwell, said: “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.
“Sales volumes and values reached their highest levels in 11 years – with robust demand from both investors and end-users – underscoring Dubai’s ever-growing appeal as a premier global destination for business and trade. Looking ahead, we expect similar patterns this year, with the off-plan segment continuing to grow as developers respond to heightened demand.
“With high quality office stock still severely constrained, buyers will be looking for viable entry points to the market through new off-plan premises.”
Off-plan activity surged in 2025, with almost 700 per cent growth in sales compared to 2024, fuelled by tight supply of ready premises and attractive prices and payment plans enabling investors to enter the market.
With 1,400 transactions, off-plan offices accounted for 35 per cent of all sales in 2025, compared to 200 transactions (10 per cent) the previous year.
Off-plan office sales
Total off-plan sales values grew almost six-fold to AED4.6bn ($1.25bn) in 2025 compared to AED700m ($190.6m) in 2024.
In the ready market, office transactions amounted to AED8.2bn ($2.23bn) in value, up 46 per cent from 2024, and 3,100 transactions in volume, up 13 per cent.
The average office sale reached AED2.7m ($735,000) in 2025, compared to AED2.1m ($571,000) a year earlier.
A total of 87,000 square metres of new office space was delivered in 2025, representing 39 per cent of the original projection of 224,000 sqm.
Dubai’s total office supply reached 9.4 million sqm – equivalent to more than 1,320 football pitches – a rise of just under 1 per cent compared to 2024.
Dubai office trends
Around 300,000 sqm of new premises is expected in 2026. However, based on historical completion patterns, actual deliveries are likely to range from 90,000 to 140,000 sqm, with some supply potentially spilling over to 2027 and beyond.
Cavendish Maxwell said the constrained pipeline of new space, coupled with high demand driven by economic growth and business expansion, will mean a supply-limited market in 2026. Conditions will favour landlords by continuing to push up rents – particularly in prime locations where quality stock is scarce.
In the ready market, Business Bay recorded the highest number of transactions with 1,230 sales, followed by Jumeirah Lakes Towers (1,067). Together, they accounted for more than 73 per cent of all ready office transactions.
Barsha Heights ranked third with 267 sales, followed by Dubai Silicon Oasis (147) and Dubai Investments Park (92).
In the off-plan segment, the top five areas were:
- Motor City – 290 sales
- Jumeirah Village Circle – 202
- Business Bay – 195
- Dubai Sports City – 189
- Majan – 166
Together, these locations were responsible for nearly 74 per cent of all off-plan sales.
Business Bay was the only area to feature in the top five for both ready and off-plan transactions, reflecting strong buyer appetite.
Biggest rent hikes in DIFC and Downtown Dubai
DIFC and Downtown Dubai commanded the highest rents and recorded the biggest rental increases in 2025, with rises of 35 per cent and 33 per cent respectively – both well above the citywide average of 23 per cent.
Barsha Heights also saw rent increases of around 33 per cent, benefiting from tight supply in core business districts.
Dubai Hills Estate, Business Bay, Jumeirah Lakes Towers and Dubai Silicon Oasis posted rental growth ranging from 25 per cent to 27 per cent, as tenants sought high-quality alternatives at lower costs than the main CBD areas.
By contrast, mature trading districts such as Bur Dubai and Deira recorded more modest rental growth of 5 per cent and 2.5 per cent respectively.
Most office sales in 2025 were for units of 1,000 to 2,000 sq ft, with nearly 50 per cent of both ready and off-plan premises falling within this size bracket.
Smaller units of less than 1,000 sq ft accounted for 37 per cent of ready purchases and 44 per cent of off-plan transactions.
Larger offices between 2,001 and 5,000 sq ft made up 13 per cent of ready sales and 8 per cent of off-plan deals. Premises of 5,000 sq ft or more represented 1.3 per cent of the ready market and 1.5 per cent of the off-plan segment.
This article was originally published in Arabian Business.
