Dubai’s office real estate sector delivered its strongest performance in over ten years during 2025, with total sales value soaring to Dh13.1 billion. The sharp rise was driven by sustained investor confidence, business expansion, and a shortage of premium-grade office spaces across the emirate.
According to Cavendish Maxwell, transaction volumes increased by 53%, reaching approximately 4,600 deals over the year. This growth reflects a resilient commercial environment supported by strong economic fundamentals and limited availability of high-quality office inventory.
Office prices saw a notable uptick, averaging Dh1,951 per square foot — a 26% annual increase. Meanwhile, rental rates climbed by 23% across Dubai, with prime districts experiencing spikes of over 30%. The tightening supply-demand balance has pushed occupancy levels higher, particularly in central business hubs where Grade A spaces remain scarce.
A key trend shaping the market has been the surge in off-plan office transactions. Sales in this segment grew nearly sevenfold compared to the previous year, accounting for around 35% of total deals, up from just 10% in 2024. Attractive pricing, flexible payment plans, and a lack of ready office units have fueled this shift.
Off-plan sales value reached Dh4.6 billion, a significant jump from Dh700 million the year before, highlighting increasing investor appetite for future-ready commercial assets.
Supply constraints continue to play a major role in market dynamics. Only about 87,000 square metres of new office space was delivered in 2025 — less than half of what was initially projected. As a result, Dubai’s total office inventory now stands at approximately 9.4 million square metres, with upcoming supply expected to remain limited despite planned developments in 2026.
In terms of location performance, Business Bay and Jumeirah Lakes Towers dominated ready office transactions, contributing to over 70% of total deals. Meanwhile, Motor City emerged as a key hotspot for off-plan activity.
Prime districts such as DIFC and Downtown Dubai recorded the highest rental increases, driven by strong corporate demand for centrally located office spaces and limited availability.
Looking ahead, Dubai’s office market is expected to remain supply-constrained in the near term, with continued demand likely to sustain upward pressure on both prices and rents.
