Latest news with #DubaiOfficeMarketReport
Entrepreneur
12 hours ago
- Business
- Entrepreneur
Dubai Office Transactions Soar to All-Time High of AED5.4 Billion; Up 84%
You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media. Dubai's office market sales values have soared by 84% year-on-year, with AED5.4 billion worth of transactions across 1,900 deals, according to new insight and analysis by leading real estate advisory and property consultant, Cavendish Maxwell. Sales transactions were up 22% on the same period last year, amid unprecedented demand for commercial space – particularly in the prime office and logistics segments, according to Cavendish Maxwell's latest Dubai Office Market Report, covering H1 2025. Dubai delivered 34,000 square metres of new office space between January and June, with another 110,000 sqm estimated to come to the market by the end of 2025 – and an additional 340,000 sqm expected in 2026, by which time the total commercial space GLA is projected to reach 9.78 sqm, the report shows. 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 AED11 billion in capital inflows, while the DIFC registered more than 1,080 new businesses – a rise of 32% year-on-year. "With strong Government backing and sustained, solid investor confidence, Dubai's office market continues to deliver an outstanding performance, with yet more records for sales volumes and values. This strong momentum is expected to continue this year and beyond, with a wave of quality new supply further strengthening the market and offering buyers and renters more flexibility." The Cavendish Maxwell report also shows that in H1: Office sales prices rose 22.2% year on year, to an average AED1,748 per square foot Ready offices accounted for nearly 85% of sales transactions, with off-plan sales gaining ground Business Bay remained the top area for sales, followed by Jumeirah Lakes Towers Office rents were up by an average 26.4% - and by almost 35% in prime areas Sales and rental price rises Year-on-year, office sales and rental prices rose by an average of 22.2% and 26.4% respectively, with sales prices reaching AED1,748 per sq ft and rental rates hitting AED166 per sq ft per annum. Compared to H2 2024, sales prices were up almost 13%, with rental rates rising 10%. With a healthy appetite among investors and occupiers, prices are expected to continue to rise. Rental rates in prime districts like DIFC and Downtown Dubai surged by almost 35% and 33.5% respectively, highlighting demand for quality space in Dubai's most sought-after business hubs. Some of the emirate's more mature, traditional trading centres such as Bur Dubai, Deira and Healthcare City saw only modest rises of 3.8%, 2.6% and 2.2% respectively – the result of older infrastructure, limited new supply and increasing investor preference for A-grade facilities, enhanced amenities and better access. Surge in off-plan demand While the ready office segment continues to dominate, accounting for almost 85% of transactions, investors are increasingly buying into the off-plan sector. With an increased market share, off-plans sales grew almost 180% compared to H1 last year and 90% against H2 2024. The surge in off-plan investment is fuelled by strong demand for upcoming modern, innovation-led and ESG-aligned space. In total, there were 1,900 ready and off-plan sales transactions worth AED5.4 billion in H1. The hottest sales locations Business Bay kept its number one position for transactions, with a total 672 ready and off-plan sales deals between January and June. In second place was Jumeirah Lakes Towers with 534 transactions, followed by Motor City (216), Barsha Heights (160) and Dubai Silicon Oasis (77). Offices spanning 1,000 to 2,000 sq ft accounted for almost half (48%) of all sales transactions, with areas of less than 1,000 sq ft taking a 39% share. 12% of investors secured spaces between 2,000 and 5,000 sq ft, with 2% taking 5,000 sq ft or more. Pipeline supply Dubai's office inventory currently stands are 9.32 million square metres of gross leasable space and is poised for a steady increase in new deliveries to the tune of 110,000 sqm between now and the end of year, and 340,000 sqm next year. Long term forecasts show that another 1 million sq ft is due to come online in 2027 and 2028, by which time Dubai's total GLA inventory could reach 10.85 sqm. Vidhi Shah said: "While the development pipeline appears to be very robust, actual completion times may vary, meaning that occupancy rates are likely to remain high in the short term. The majority of upcoming supply is projected to hit the market between 2026 and 2028, when we can expect price pressure to ease on both sales and rentals."
Arabian Post
12 hours ago
- Business
- Arabian Post
Dubai Office Market Sees Significant Surge in Sales Transactions
Dubai's office real estate market has experienced a remarkable upswing, with sales transactions reaching AED5.4 billion in the first half of the year, an 84% year-on-year increase. This surge comes on the back of a dynamic and growing demand for commercial spaces, particularly in the prime office and logistics segments, as noted in Cavendish Maxwell's latest Dubai Office Market Report. According to the report, the number of office space transactions rose by 22% compared to the same period last year. The surge is largely attributed to a recovering economy and an increased appetite for high-quality commercial spaces as businesses continue to scale operations or relocate to more central locations. The report highlights that over 1,900 office deals were conducted across the city, showing a consistent interest from both local and international investors in Dubai's thriving office space market. The increase in transaction value has sparked interest among real estate developers and investors looking to capitalise on the growing demand for commercial properties. The market's recovery comes after a period of uncertainty during the global pandemic, with many businesses now opting to secure office spaces to accommodate workforce expansion, high-end retail operations, or advanced logistical hubs. ADVERTISEMENT A notable segment within this trend is the logistics sector, which has seen considerable growth due to Dubai's strategic position as a global trade hub. As businesses strive to optimise their supply chain and distribution networks, demand for office spaces designed with logistics in mind has intensified. This shift towards more tailored office spaces is shaping how developers and investors approach new commercial developments. Alongside the surge in demand, the report reveals that approximately 34,000 square metres of new office space were delivered to the market in the first half of the year. This new supply aims to meet the growing needs of companies seeking modern, flexible office environments, particularly in central business districts such as the Dubai International Financial Centre and Business Bay. Additionally, another 110,000 square metres are expected to enter the market by the end of 2025, providing more options for both businesses and investors. For the year 2026, experts project that the supply of office space will increase significantly, with an additional 340,000 square metres expected to be delivered. By the time this new space comes online, the total gross leasable area of office space in Dubai is projected to reach an impressive 9.78 million square metres. This development is part of a wider trend where Dubai continues to expand its commercial real estate infrastructure in response to the growing population, economic diversification, and global demand. Developers in the region are responding to this demand with projects that cater to various sectors, from financial institutions to tech firms, offering modern amenities and sustainable features. These developments are being designed with sustainability in mind, meeting the requirements of an increasingly eco-conscious market. As companies prioritise employee well-being and work-life balance, the incorporation of green building technologies and flexible workspaces has become a key differentiator in the office market. Dubai's success in the office space sector is not only attributed to the demand from established businesses but also to the inflow of new companies entering the market. International corporations, particularly in finance, technology, and consulting, continue to be drawn to Dubai's favourable tax policies, world-class infrastructure, and access to a diverse, skilled workforce.
Zawya
12 hours ago
- Business
- Zawya
Dubai office market sales value up 84% in H1, says report
Dubai's office market sales values for the first six months of the year have soared by 84% year-on-year with AED5.4 billion ($1.47 billion) worth of transactions across 1,900 deals, according to leading real estate advisory and property consultant, Cavendish Maxwell. Sales transactions were up 22% on the same period last year, amid unprecedented demand for commercial space – particularly in the prime office and logistics segments, stated Cavendish Maxwell in its latest Dubai Office Market Report for H1 2025. A total of 34,000 sq m of new office space had been delivered between January and June, with another 110,000 sq m estimated to come to the market by the end of the year, stated the report. An additional 340,000 sq m is expected in 2026, by which time the total commercial space GLA is projected to reach 9.78 sqm, it added. Vidhi Shah, the Director and Head of Commercial Valuation at Cavendish Maxwell, said the emirate's investment landscape continues to flourish, attracting more than 500 new FDI projects and securing over AED11 billion in capital inflows. The DIFC, she stated, registered more than 1,080 new businesses, thus registering an increase of 32% year-on-year. The Cavendish Maxwell report also shows that in H1: *Office sales prices rose 22.2% year on year, to an average AED1,748 per square foot *Ready offices accounted for nearly 85% of sales transactions, with off-plan sales gaining ground *Business Bay remained the top area for sales, followed by Jumeirah Lakes Towers *Office rents were up by an average 26.4% - and by almost 35% in prime areas Year-on-year, office sales and rental prices rose by an average of 22.2% and 26.4% respectively, with sales prices reaching AED1,748 per sq ft and rental rates hitting AED166 per sq ft per annum. Compared to H2 2024, sales prices were up almost 13%, with rental rates rising 10%. With a healthy appetite among investors and occupiers, prices are expected to continue to rise, said the property expert. Rental rates in prime districts like DIFC and Downtown Dubai surged by almost 35% and 33.5% respectively, highlighting demand for quality space in Dubai's most sought-after business hubs. Dubai's office inventory currently stands are 9.32 million sq m of gross leasable space and is poised for a steady increase in new deliveries to the tune of 110,000 sq m between now and the end of year, and 340,000 sqm next year. Long term forecasts show that another 1 million sq ft is due to come online in 2027 and 2028, by which time Dubai's total GLA inventory could reach 10.85 sqm. "This strong momentum is expected to continue this year and beyond, with a wave of quality new supply further strengthening the market and offering buyers and renters more flexibility," stated Shah. "While the development pipeline appears to be very robust, actual completion times may vary, meaning that occupancy rates are likely to remain high in the short term. The majority of upcoming supply is projected to hit the market between 2026 and 2028, when we can expect price pressure to ease on both sales and rentals," he added.- TradeArabia News Service Copyright 2025 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Trade Arabia
24-04-2025
- Business
- Trade Arabia
Dubai to deliver 415,000 sq m new office space by 2026-end
Dubai is set to deliver 415,000 sq m of new office space by the end of 2026, with the majority of new inventory in the A-grade category, according to new research from leading real estate advisory and property consultant, Cavendish Maxwell. Around 185,000 sqm of new space is due to come to market this year, with another 230,000 sqm in 2026, as demand for quality offices in Dubai continues to rise, it stated. By the end of next year, Dubai's total office space inventory will reach almost 9.7 sqm, compared to 6.26 sqm today, said the expert in its latest Dubai Office Market Report. 2024 saw record transaction volumes and values in recent years, with 3,150 sales valued at AED6.8 billion ($1.85 billion), a 36% rise in values and a 7.1% in increase in transactions, it added. Business Bay led the field for office sales, accounting for over 46% of transactions. Vidhi Shah, a Partner and Head of Commercial Valuation, Cavendish Maxwell, said: "Dubai's office market continues to perform strongly, supported by sustained corporate expansion and increased levels of foreign investment." "The city's stable macroeconomic environment, coupled with pro-business legislation, continues to attract both multinational occupiers and a growing base of start-ups and SMEs. This has translated into heightened competition for well-located, prime office space," she added. According to Shah, the market recorded significant growth in both sales and rental values over the past year. "Looking ahead, as Dubai further enhances its infrastructure, expands free zone offerings, and rolls out additional business-friendly reforms, demand is expected to remain resilient. However, with a substantial volume of new supply due for delivery over the next 18–24 months, it will be important to track how this impacts vacancy levels, absorption rates, and overall market sentiment," she added. Cavendish Maxwell said office values and transaction volumes reached their highest peak in 2024, marking four consecutive years of growth since the 2020 pandemic. Sales values have surged five-fold, from AED1 billion in 2020 to AED6.8 billion in 2024, primarily driven by increased demand from both local and international buyers, it stated. Ready offices continue to dominate sales activity, accounting for nearly 92% of transactions – down slightly from 2023 owing to a rise in off-plan sales. Increased demand for off-plan offices is fuelled by growing investor confidence, demand for new accommodation and attractive payment plans. Businesses are also securing office space for the long term by buying off-plan to avoid the risk of future rent hikes, it added. According to Cavendish Maxwell, there were 2,900 ready office sales and 250 off-plan transactions in 2024 – a year-on-year rise of 5% and 37% respectively. Average sales and rental prices up almost 25% Office sales and rental prices rose nearly a quarter last year, reflecting sustained demand for ready offices, business expansion and new companies being established. Sales prices reached approximately AED1,550 per square foot, while rental rates hit approximately AED145 per sq ft. The real estate expert said the surge in rental prices was mainly driven by high occupancy levels, which favour landlords and can be a challenge for tenants in securing prime office space. As demand for prime space continues to rise, landlords are likely to refurbish existing stock to command higher rentals, it added. Business Bay topped the ready office sales chart in 2024, with 1,343 sales representing more than 46% of all transactions, followed by Jumeirah Lakes Towers (920 sales), Dubai Silicon Oasis (200), Barsha Heights (148) and Motor City (68). In the off-plan market, Jumeirah Village Circle emerged as the most popular area, with 91 transactions, followed by Dubai Maritime City (65), Culture Village (47), Dubai Silicon Oasis (20) and Jumeirah Lakes Towers (15).
Zawya
24-04-2025
- Business
- Zawya
Dubai to deliver 415,000 sq m new office space by 2026-end
Dubai is set to deliver 415,000 sq m of new office space by the end of 2026, with the majority of new inventory in the A-grade category, according to new research from leading real estate advisory and property consultant, Cavendish Maxwell. Around 185,000 sqm of new space is due to come to market this year, with another 230,000 sqm in 2026, as demand for quality offices in Dubai continues to rise, it stated. By the end of next year, Dubai's total office space inventory will reach almost 9.7 sqm, compared to 6.26 sqm today, said the expert in its latest Dubai Office Market Report. 2024 saw record transaction volumes and values in recent years, with 3,150 sales valued at AED6.8 billion ($1.85 billion), a 36% rise in values and a 7.1% in increase in transactions, it added. Business Bay led the field for office sales, accounting for over 46% of transactions. Vidhi Shah, a Partner and Head of Commercial Valuation, Cavendish Maxwell, said: "Dubai's office market continues to perform strongly, supported by sustained corporate expansion and increased levels of foreign investment." "The city's stable macroeconomic environment, coupled with pro-business legislation, continues to attract both multinational occupiers and a growing base of start-ups and SMEs. This has translated into heightened competition for well-located, prime office space," she added. According to Shah, the market recorded significant growth in both sales and rental values over the past year. "Looking ahead, as Dubai further enhances its infrastructure, expands free zone offerings, and rolls out additional business-friendly reforms, demand is expected to remain resilient. However, with a substantial volume of new supply due for delivery over the next 18–24 months, it will be important to track how this impacts vacancy levels, absorption rates, and overall market sentiment," she added. Cavendish Maxwell said office values and transaction volumes reached their highest peak in 2024, marking four consecutive years of growth since the 2020 pandemic. Sales values have surged five-fold, from AED1 billion in 2020 to AED6.8 billion in 2024, primarily driven by increased demand from both local and international buyers, it stated. Ready offices continue to dominate sales activity, accounting for nearly 92% of transactions – down slightly from 2023 owing to a rise in off-plan sales. Increased demand for off-plan offices is fuelled by growing investor confidence, demand for new accommodation and attractive payment plans. Businesses are also securing office space for the long term by buying off-plan to avoid the risk of future rent hikes, it added. According to Cavendish Maxwell, there were 2,900 ready office sales and 250 off-plan transactions in 2024 – a year-on-year rise of 5% and 37% respectively. Average sales and rental prices up almost 25% Office sales and rental prices rose nearly a quarter last year, reflecting sustained demand for ready offices, business expansion and new companies being established. Sales prices reached approximately AED1,550 per square foot, while rental rates hit approximately AED145 per sq ft. The real estate expert said the surge in rental prices was mainly driven by high occupancy levels, which favour landlords and can be a challenge for tenants in securing prime office space. As demand for prime space continues to rise, landlords are likely to refurbish existing stock to command higher rentals, it added. Business Bay topped the ready office sales chart in 2024, with 1,343 sales representing more than 46% of all transactions, followed by Jumeirah Lakes Towers (920 sales), Dubai Silicon Oasis (200), Barsha Heights (148) and Motor City (68). In the off-plan market, Jumeirah Village Circle emerged as the most popular area, with 91 transactions, followed by Dubai Maritime City (65), Culture Village (47), Dubai Silicon Oasis (20) and Jumeirah Lakes Towers (15). Year-on-year office rents have risen across Dubai, with A-grade premises commanding some of the biggest year-on-year increases. In Downtown Dubai, rents rose by nearly 42%, with DIFC rates up by more than 38%. Barsha Heights saw the highest rise for non-A-grade spaces, with a 43.5% hike. Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
