The Dubai office market is experiencing a remarkable resurgence, with office sales values soaring by 84% in the first half of 2025. This surge, accompanied by transaction volumes reaching AED 5.4 billion, highlights the increasing investor interest in high-quality, ESG-aligned office spaces. The latest insights reveal not only robust demand but also a transformation in the city’s commercial landscape, positioning Dubai as a preferred destination for businesses and investors alike.
According to a new report by Cavendish Maxwell, the remarkable rise in office sales values to AED 5.4 billion was noted across 1,900 transactions, marking the highest half-year activity since 2014. This significant milestone underscores a renewed vitality in Dubai’s commercial real estate sector.
Transaction volumes have shown a positive trend, increasing by 22% compared to the same period last year, reflecting robust demand across both prime office spaces and logistics segments. The appeal for high-standard office environments is driving this consistent upward trend in the market.
During the first six months of 2025, Dubai added 34,000 square meters of new office space, elevating the total gross leasable area to 9.32 million square meters. Projections indicate that an additional 110,000 square meters will be available by the end of the year, with a further 340,000 square meters expected in 2026. By 2028, the gross leasable area in Dubai’s office market is anticipated to reach 10.85 million square meters.
Vidhi Shah, Director and Head of Commercial Valuation at Cavendish Maxwell, commented on the vibrant investment landscape: “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 percent year-on-year.”
“With strong government backing and sustained investor confidence, Dubai’s office market continues to deliver 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
In terms of financial performance, office sales prices surged by 22.2% year-on-year to AED 1,748 per square foot, while rents increased by an average of 26.4%. In prime districts, rents saw even more dramatic increases, with a near 35% rise. Compared to the latter half of 2024, sales prices have risen nearly 13%, reflecting a strong appetite for premier office space.
Prime areas such as DIFC and Downtown Dubai demonstrated rental growth of 35% and 33.5%, respectively. In contrast, older districts like Bur Dubai, Deira, and Healthcare City experienced more modest rental increases of 3.8%, 2.6%, and 2.2%, respectively. Investors are increasingly drawn to A-grade buildings equipped with modern amenities and strong ESG credentials, indicating a shift in preference towards sustainable investment.
Off-Plan Market Surges
While ready office units constituted 85% of transactions, off-plan sales saw a remarkable uptick, increasing by nearly 180% year-on-year and 90% compared to the second half of 2024. This soaring demand for modern, innovation-driven, and ESG-aligned developments is driving the growth of the off-plan market.
Business Bay remains the leading sales location, featuring 672 transactions, followed by Jumeirah Lakes Towers with 534 deals, Motor City with 216, Barsha Heights with 160, and Dubai Silicon Oasis with 77. Transactions for office spaces between 1,000 to 2,000 square feet accounted for 48% of sales, while units below 1,000 square feet represented 39%. Spaces of 2,000 to 5,000 square feet made up 12%, and those above 5,000 square feet comprised 2% of total transactions.
Currently, Dubai’s office market boasts a gross leasable area of 9.32 million square meters, with an additional 110,000 square meters projected to be incorporated by the end of 2025 and another 340,000 square meters in 2026. Long-term forecasts indicate that an additional 1 million square feet of office space will be completed in 2027 and 2028, bringing the total inventory to 10.85 million square meters.
“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 remarked.