Dubai’s office market recorded a surge in sales values and transaction volumes in the first half of 2025, with investors increasingly favouring ESG-aligned assets and modern, high-quality office space.
According to a new report by Cavendish Maxwell, office sales values rose 84 per cent year-on-year to AED 5.4 billion across 1,900 deals, marking the highest half-year activity since 2014.
Transaction volumes were up 22 per cent compared with the same period last year, reflecting robust demand in both prime office and logistics segments.
Dubai added 34,000 square metres of new office space between January and June, bringing the total gross leasable area to 9.32 million square metres. An additional 110,000 square metres is expected by the end of 2025, with 340,000 square metres forecast for 2026, the report said. By 2028, the total gross leasable area in Dubai’s office market is projected to reach 10.85 million square metres.
Vidhi Shah, Director and Head of Commercial Valuation at Cavendish Maxwell, said: “Dubai’s investment landscape continues to flourish, further cementing the emirate’s status as the UAE’s leading economic hub – and a global destination for business. In H1 this year, Dubai attracted more than 500 new FDI projects, securing over AED 11 billion in capital inflows, while the DIFC registered more than 1,080 new businesses – a rise of 32 per cent year-on-year.”
“With strong government backing and sustained investor confidence, Dubai’s office market continues to deliver an outstanding performance, with yet more records for sales volumes and values. This momentum is expected to continue, with a wave of new supply further strengthening the market and offering buyers and renters more flexibility,” he added.
Sales and rental growth
Office sales prices rose 22.2 per cent year-on-year to AED 1,748 per square foot, while rents increased 26.4 per cent on average and by nearly 35 per cent in prime districts. Compared with the second half of 2024, sales prices rose almost 13 per cent, and rents by 10 per cent, reflecting a strong appetite for premium office space.
Prime districts such as DIFC and Downtown Dubai recorded rental growth of 35 per cent and 33.5 per cent, while older hubs such as Bur Dubai, Deira and Healthcare City saw more modest increases of 3.8 per cent, 2.6 per cent and 2.2 per cent, respectively. Investors and occupiers are increasingly targeting A-grade buildings with modern amenities and ESG credentials.
Off-plan market surges
While ready office units accounted for 85 per cent of transactions, off-plan sales gained traction, rising almost 180 per cent year-on-year and 90 per cent compared with the second half of 2024. Rising demand for modern, innovation-led and ESG-aligned developments is driving the off-plan market.
Business Bay retained its position as the top sales location, with 672 transactions, followed by Jumeirah Lakes Towers with 534 deals, Motor City with 216, Barsha Heights with 160, and Dubai Silicon Oasis with 77. Offices of 1,000 to 2,000 square feet represented 48 per cent of sales, units below 1,000 square feet made up 39 per cent, 2,000 to 5,000 square feet accounted for 12 per cent, and spaces above 5,000 square feet comprised 2 per cent.
Dubai’s office market currently offers 9.32 million square metres of gross leasable area, with 110,000 square metres due to come online by the end of 2025 and a further 340,000 square metres in 2026. Long-term forecasts indicate another 1 million square feet of office space will be delivered in 2027 and 2028, increasing total inventory to 10.85 million square metres.
“While the development pipeline appears robust, completion timelines may vary. Occupancy rates are likely to remain high in the short term, with most new supply expected between 2026 and 2028, when price pressures on sales and rentals may ease,” Shah said.
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