Dubai office market sales value up 84% in H1, says report

Dubai’s office market sales values for the first six months of the year have soared by 84% year-on-year with AED5.4 billion ($1.47 billion) worth of transactions across 1,900 deals, according to leading real estate advisory and property consultant, Cavendish Maxwell.

Sales transactions were up 22% on the same period last year, amid unprecedented demand for commercial space – particularly in the prime office and logistics segments, stated Cavendish Maxwell in its latest Dubai Office Market Report for H1 2025.

A total of 34,000 sq m of new office space had been delivered between January and June, with another 110,000 sq m estimated to come to the market by the end of the year, stated the report.

An additional 340,000 sq m is expected in 2026, by which time the total commercial space GLA is projected to reach 9.78 sqm, it added.

Vidhi Shah, the Director and Head of Commercial Valuation at Cavendish Maxwell, said the emirate’s investment landscape continues to flourish, attracting more than 500 new FDI projects and securing over AED11 billion in capital inflows.

The DIFC, she stated, registered more than 1,080 new businesses, thus registering an increase of 32% year-on-year.

The Cavendish Maxwell report also shows that in H1:

*Office sales prices rose 22.2% year on year, to an average AED1,748 per square foot

*Ready offices accounted for nearly 85% of sales transactions, with off-plan sales gaining ground

*Business Bay remained the top area for sales, followed by Jumeirah Lakes Towers

*Office rents were up by an average 26.4% – and by almost 35% in prime areas

Year-on-year, office sales and rental prices rose by an average of 22.2% and 26.4% 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%, with rental rates rising 10%. With a healthy appetite among investors and occupiers, prices are expected to continue to rise, said the property expert.

Rental rates in prime districts like DIFC and Downtown Dubai surged by almost 35% and 33.5% respectively, highlighting demand for quality space in Dubai’s most sought-after business hubs. 

Dubai’s office inventory currently stands are 9.32 million sq m of gross leasable space and is poised for a steady increase in new deliveries to the tune of 110,000 sq m between now and the end of 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.

“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,” stated Shah.

“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,” he added.

This article was originally published in Trade Arabia.