Dubai’s office real estate sector recorded a standout year in 2025, with total sales value more than doubling to AED13.1 billion ($3.57 billion), marking its strongest performance in over a decade, according to Cavendish Maxwell.
Sales values surged by 102% compared to 2024, while transaction volumes climbed 53% year-on-year to approximately 4,600 deals, highlighting sustained demand from both investors and occupiers.
A key driver of this growth was the sharp rise in off-plan activity, which expanded nearly sevenfold compared to the previous year. This surge was largely supported by limited availability of ready office stock, along with competitive pricing and flexible payment structures that attracted new market entrants.
Average office prices rose to AED1,951 per sq ft in 2025, reflecting a 26% annual increase. Rental rates also saw strong upward momentum, rising by an average of 23%, with prime locations recording increases exceeding 30%.
The report highlights that Dubai’s office market continues to benefit from solid economic fundamentals, business expansion, and constrained supply. These factors pushed both transaction values and volumes to their highest levels in 11 years, reinforcing Dubai’s position as a leading global hub for commerce.
Supply and Market Dynamics
New office supply remained limited in 2025, with only 87,000 sq m delivered—just 39% of the initially projected pipeline. This brought total office inventory to 9.4 million sq m, representing marginal annual growth.
Although around 300,000 sq m of new space is expected in 2026, actual completions are likely to fall between 90,000 and 140,000 sq m, potentially delaying some projects into 2027. As a result, supply constraints are expected to persist, creating a landlord-favourable market and putting continued upward pressure on rents—especially in prime districts.
Off-Plan vs Ready Market Performance
Off-plan office transactions surged to around 1,400 deals in 2025, accounting for 35% of total transactions—up significantly from just 10% in 2024. The segment’s total value rose nearly sixfold to AED4.6 billion.
Meanwhile, ready office sales reached AED8.2 billion in value, a 46% increase year-on-year, with transaction volumes rising 13% to around 3,100 deals. The average office sale price climbed to AED2.7 million, up from AED2.1 million in 2024.
Top Performing Locations
Among ready office markets, Business Bay and Jumeirah Lakes Towers led in transaction volumes, jointly accounting for over 73% of deals. Other active areas included Barsha Heights, Dubai Silicon Oasis, and Dubai Investments Park.
In the off-plan segment, Motor City ranked first, followed by Jumeirah Village Circle, Business Bay, Dubai Sports City, and Majan. Together, these areas contributed nearly three-quarters of all off-plan transactions.
Notably, Business Bay remained the only district to feature prominently in both ready and off-plan segments, reflecting its strong and consistent demand.
Rental Growth Trends
Prime business districts saw the sharpest rental increases. Dubai International Financial Centre recorded a 35% rise, while Downtown Dubai saw rents increase by 33%, both significantly above the city average.
Other areas such as Dubai Hills Estate, Business Bay, Jumeirah Lakes Towers, and Dubai Silicon Oasis also posted strong rental gains ranging between 25% and 27%, as tenants sought quality office space at relatively competitive prices.
In contrast, older commercial hubs like Bur Dubai and Deira experienced more modest rental growth.
Office Size Preferences
Demand in 2025 was largely concentrated in small to mid-sized office units. Nearly half of all transactions were for spaces between 1,000 and 2,000 sq ft. Smaller offices under 1,000 sq ft accounted for a significant share, particularly in the off-plan segment.
Larger office units above 2,000 sq ft represented a smaller portion of transactions, indicating a preference for flexible, cost-efficient workspaces among businesses.
