Cavendish Maxwell: Dubai Office Sales Soar Up 84% to a Record AED 5.4 Billion

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 of 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 the 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.”