Dubai's office market sets new records, with AED2.8bln worth of sales across 933 transactions
Off-plan transaction values surge 741% as rising rents prompt both investors and tenants to buy
Business Bay and Jumeirah Lakes Towers top areas for sales
Dubai – Dubai's office real estate market has set new records for sales values and volumes, with investors spending AED2.8 billion across 933 transactions in Q1 2025, according to new insight from leading real estate advisory and property consultant, Cavendish Maxwell.
Office sales values from January to March this year were 83% higher compared to the same period in 2024, while transaction volumes were up almost 24%, the Dubai-based company said.
Cavendish Maxwell's latest Dubai Office Market Performance report also shows that while ready offices still dominate the sales market, off-plan transaction values rose a staggering 741% - nearly 8-fold - to reach a new high of AED800 million in Q1, against AED100 million a year ago. Ready office transactions increased by nearly 40% year-on-year. Of the 900+ total transactions, 18% were for off-plan premises, up from 8% in Q1 2024.
Vidhi Shah, Director, Head of Commercial Valuation at Cavendish Maxwell, said: '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% 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.
'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.'
Price trends
Sales prices continue to rise: Q1 2025 saw a jump of almost a quarter (24.5%) year-on-year and increase of 6.5% quarter-on-quarter. As of March, average sales prices stood at AED1,650 per square foot, compared to AED1,325 psf in March last year. Rental rates increased by similar amounts: 24% year-on-year and 6.7% compared to Q4 2024, with average office rates reaching AED160 psf. Hikes were seen across all quality tiers of offices, with limited supply of A-grade space driving increases in B and C space. Downtown Dubai saw the biggest year-on-year growth, up almost 40%. Next were DIFC (39%) and Barsha Heights (38%).
Top areas for transaction volume
Business Bay commanded the number one spot for office sales (ready and off-plan combined) in Q1, with 316 transactions. In second place was Jumeirah Lakes Towers (222), followed by Motor City (130), Barsha Heights (88) and Dubai Silicon Oasis (41).
Size matters
Almost half (48%) of sales transactions in Q1 were for offices between 1,000 and 2,000 sq ft in size. Premises measuring less than 1,000 sq ft accounted for 40% of sales, while spaces from 2,001-5,000 sq ft accounted for 10%. The remaining 2% were for areas covering over 5,000 sq ft.
Existing and upcoming supply
As of Q1 this year, Dubai's total office inventory reached nearly 9.3 million square metres of gross leasable area (GLA). Another 215,000 sq m is expected to come to the market between now and the end of the year, followed by a further 181,000 sq m in 2026.
Vidhi Shah added: '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.'
Download the full Cavendish Maxwell Dubai Office Market Performance report here.
For media enquiries, please contact: Rebecca Rees at rebecca@rebecomms.com
A bout Cavendish Maxwell
Cavendish Maxwell is one of the Middle East's leading real estate advisory groups and property consultants, with offices in Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Kuwait City, Muscat and Riyadh. The company is a member of the Royal Institution of Chartered Surveyors (RICS) and offers a full range of property-related services, including valuation, strategic advisory, research, project and building consultancy and investment and commercial agency expertise. With a team of experienced professionals and a commitment to delivering exceptional service, Cavendish Maxwell has established itself as a trusted advisor in the regional real estate market.
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