Dubai, UAE — The Dubai office market 2025 delivered its strongest annual performance in more than a decade, with sales values more than doubling to AED13.1 billion ($3.57 billion), according to Cavendish Maxwell’s latest Office Market Performance Report.
Transaction values surged 102% year-on-year, while volumes rose 53% to 4,600 deals — the highest levels recorded since 2014. The acceleration reflects a market driven by constrained Grade A supply, rising rents and a growing shift toward off-plan commercial investment.
Sales prices climbed 26% to reach AED1,951 per sq ft, while average rents increased 23% citywide, with prime districts posting significantly higher gains.
Capital Values Deepen as Demand Broadens
The scale of growth in 2025 signals more than cyclical recovery. The average office sale price increased to AED2.7 million, up from AED2.1 million in 2024, pointing to rising ticket sizes and stronger capital allocation into the sector.
Ready office transactions accounted for AED8.2 billion in value, a 46% increase from the previous year, with 3,100 deals recorded. Demand was strongest in Business Bay and Jumeirah Lakes Towers, which together represented more than 73% of ready office transactions.
Business Bay alone recorded 1,230 ready sales, followed by JLT with 1,067, reinforcing their dominance as core commercial hubs outside the traditional CBD.
This demand growth comes amid broader economic expansion in Dubai, continued company formation and steady corporate migration into the emirate.
Off-Plan Segment Expands Rapidly
One of the most striking trends in the Dubai office market 2025 was the near 700% surge in off-plan office sales.
Off-plan transactions rose from 200 deals in 2024 to 1,400 in 2025, accounting for 35% of total office sales compared to just 10% the previous year. Sales values in the segment increased almost six-fold to AED4.6 billion.
Motor City led off-plan activity with 290 transactions, followed by Jumeirah Village Circle (202), Business Bay (195), Dubai Sports City (189) and Majan (166).
The shift reflects investor positioning in response to limited ready stock and escalating rents. Competitive pricing and structured payment plans have enabled investors to enter the commercial market before project completion, narrowing the gap between ready and off-plan activity.
However, sustained growth in this segment will depend on delivery timelines and absorption capacity once new supply materialises.
Supply Constraints Remain Structural
Despite strong demand, new office supply remained limited in 2025. Only 87,000 sq m of new space was delivered, representing 39% of the original projected pipeline of 224,000 sq m.
Total office inventory increased by less than 1% year-on-year, reaching 9.4 million sq m.
Around 300,000 sq m is expected in 2026, though historical completion patterns suggest actual deliveries could range between 90,000 and 140,000 sq m, with potential spillover into 2027.
This persistent supply gap has reinforced landlord leverage, particularly in prime districts where Grade A stock remains scarce.
Rental Divergence Across Submarkets
Rental growth varied significantly by location. DIFC recorded the strongest increase at 35%, followed by Downtown Dubai at 33%, both exceeding the citywide average of 23%.
Barsha Heights also posted gains of approximately 33%, benefiting from tenants seeking alternatives to higher-priced core districts.
Business Bay, Dubai Hills Estate, JLT and Dubai Silicon Oasis saw rental growth between 25% and 27%, supported by steady SME and corporate demand.
By contrast, mature areas such as Bur Dubai and Deira recorded modest increases of 5% and 2.5%, reflecting stable but less aggressive demand dynamics.
The divergence underscores a two-speed market, where premium, centrally located Grade A assets command pricing power while secondary districts grow at a slower pace.
Unit Sizes Reflect SME Growth
Nearly half of all office sales in 2025 were for units between 1,000 and 2,000 sq ft, indicating strong demand from small to mid-sized enterprises.
Smaller units under 1,000 sq ft accounted for 37% of ready purchases and 44% of off-plan transactions, reinforcing the role of SMEs in driving commercial absorption.
Larger units above 5,000 sq ft represented less than 2% of total sales, suggesting that large corporates continue to prioritise consolidated or leased Grade A space rather than strata ownership.
Tight Market Likely to Persist
With constrained supply and continued business formation, the Dubai office market 2025 appears positioned for further rental pressure in 2026.
However, risks remain. A significant wave of completions could stabilise rents, while global economic headwinds or corporate consolidation may temper transaction growth. Additionally, the rapid expansion of off-plan sales introduces delivery risk should timelines extend.
For now, the market remains supply-led rather than demand-constrained, with capital increasingly rotating into commercial assets amid expectations of sustained occupancy growth.
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