According to recent data from Cavendish Maxwell, investors spent AED2.8 billion ($762.4 million) on 933 transactions in Q1 2025, setting new records for sales volumes and values in Dubai’s office real estate sector. Compared to the same period in 2024, office sales values from January to March of this year were 83% higher, and transaction volumes increased by about 24%.
“These record-breaking figures speak for themselves. Dubai continues to enhance its position as a global business hub and a magnet for businesses large and small. The momentum is real: Q1 2025 saw nearly 40 percent more foreign company registrations – including multinationals and SMEs – compared to the same time last year, reflecting ever-growing investor confidence and creating unprecedented demand for office space,” said Vidhi Shah, director, head of commercial valuation at Cavendish Maxwell.
Off-plan transaction values surge 741 percent
Off-plan transaction prices increased by an astounding 741 percent, or nearly eight times, to reach a record high of AED800 million in Q1 from AED100 million a year earlier, according to the research, even though ready offices continue to dominate the Dubai sales market.
In the meantime, ready office transactions rose by about 40% annually. Compared to 8% in Q1 2024, 18% of the more than 900 purchases were for off-plan premises.
“The surge in off-plan deals can be attributed to buyer trust in upcoming developments, competitive launch prices, flexible payment plans and expectations of long-term capital appreciation. With limited existing supply and rising rental costs, a growing number of tenants are opting to buy as a strategic, long-term cost-saving measure. Ready offices still account for the majority of sales, but it is clear that off-plan properties are very much in demand, and we expect this trend to continue throughout 2025 and beyond,” added Shah.
Office prices jump 24.5 percent
The office real estate market in Dubai is seeing a steady increase in sales prices. The first quarter of 2025 had a 24.5 percent year-over-year and a 6.5 percent quarter-over-quarter growth. The average sales price as of March was AED 1,650 per square foot, up from AED 1,325 per square foot in the same month the previous year. With average office rates hitting AED160 psf, rental rates also rose by comparable amounts, rising by 24% year over year and 6.7% from Q4 2024.
All office quality levels also saw increases, with a shortage of A-grade space leading to a rise in B and C space. The largest annual rise, up nearly 40%, was in downtown Dubai. Barsha Heights came next with 38 percent and DIFC with 39 percent.
Top areas for office sales
With 316 transactions, Business Bay held the top rank for office sales in Dubai’s real estate market (both ready and off-plan combined) in Q1. Jumeirah Lakes Towers (222) came in second, followed by Dubai Silicon Oasis (41) Motor City (130), and Barsha Heights (88).
Offices ranging in size from 1,000 to 2,000 square feet accounted for nearly half of all sales transactions in Q1. Ten percent of sales occurred in spaces between 2,001 and 5,000 square feet, while forty percent occurred in locations smaller than 1,000 square feet. Areas above 5,000 square feet accounted for the remaining 2 percent.
Upcoming 215,000 sq m of supply
The gross leasable area (GLA) of Dubai’s offices as of the first quarter of this year was close to 9.3 million square meters. Between now and the end of the year, another 215,000 square meters are anticipated to hit the market, with an additional 181,000 square meters following in 2026.
“Much of the new supply is concentrated in core business districts, with a significant proportion in the A-grade category. With a strong development pipeline over the next three years, we expect the current supply-demand imbalance to narrow, bringing some relief to tenants and easing upward pressure on prices,” added Shah.
