Dubai’s office market has generated AED3.1 billion in sales during the third quarter of 2025, marking an increase of 89 per cent compared to the same period last year, according to property consultancy Cavendish Maxwell.
Off-plan sales values exceeded AED1 billion for the first time in 15 years. The number of transactions in the off-plan segment increased four times compared to Q3 2024, the company reported.
The market recorded 1,200 sales deals between July and September, representing a rise of 39 per cent year-on-year and 19 per cent compared to Q2, according to Cavendish Maxwell’s analysis of Dubai’s office real estate market.
Off-plan office sales in Dubai exceed AED1 billion for first time in 15 years
“Business is booming in Dubai’s office market, underscoring the city’s ability to attract and retain global businesses, and deliver value for owners and investors. As the sector experiences one of its strongest phases in recent years, sales volumes and values have hit new highs again as demand for office space continues to surge. The off-plan segment in particular is seeing a sharp acceleration in sales as investors look for newer premises with efficient layouts, ESG-aligned specifications and attractive payment plans,” Vidhi Shah, Director, Head of Commercial Valuation at Cavendish Maxwell explained
“However, despite this strong demand, supply remains tight. More than 224,000 sqm of new space was initially scheduled for delivery this year, but statistics show that only 80,000 came to market between January and September, with another 40,500 expected by the end of the year. This limited pipeline puts upward pressure on occupancy levels and rental rates. As of now, Dubai’s total office inventory is around 9.36 million sqm of GLA, and we predict an acceleration in supply from 2026 onwards, with total inventory forecast to reach nearly 10.9 million sqm by 2028,” she added.
Sales prices rose by 25.2 per cent year-on-year, reaching an average of AED1,800 per square foot. The increase reflects investor and end-user demand combined with limited supply.
Business Bay leads Dubai office sales with 328 transactions in Q3 2025
Business Bay recorded 328 transactions, maintaining its position as the location with the most office sales. Jumeirah Lakes Towers followed with 277 deals.
Majan entered the top five locations for the first time with 112 transactions. Jumeirah Village Circle secured 110 sales and Barsha Heights recorded 71. These five areas accounted for 79 per cent of all Q3 sales.
Office rental rates climbed by 30 per cent on average, with variations depending on location. DIFC recorded the highest increase at 35.5 per cent, followed by Downtown Dubai at 33.9 per cent. Demand for centrally located premises drove these increases.
Barsha Heights and Dubai Hills Estate saw rents rise by more than 27 per cent. Bur Dubai and Deira recorded increases of 4.2 per cent and 3.3 per cent respectively.
“The divergence in office rents highlights a tiered market structure, with prime locations commanding premium growth due to limited supply and strong tenant demand and well positioned secondary areas reaping the benefits of displaced demand while offering value-for-money, alternative accommodation,” Shah concluded.
