Dubai's office market sets new records with $762.4 million sales in Q1 2025
Cavendish Maxwell
. Office sales values from January to March this year were 83 percent higher compared to the same period in 2024, while transaction volumes were up almost 24 percent.
'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 percent 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,' said Vidhi Shah, director, head of commercial valuation at Cavendish Maxwell.
Off-plan transaction values surge 741 percent
The report also revealed that while ready offices still dominate the Dubai sales market, off-plan transaction values rose a staggering 741 percent – nearly 8-fold – to reach a new high of AED800 million in Q1, against AED100 million a year ago.
Meanwhile, ready office transactions increased by nearly 40 percent year-on-year. Of the 900+ total transactions, 18 percent were for off-plan premises, up from 8 percent in Q1 2024.
'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,' added Shah.
Office prices jump 24.5 percent
Sales prices across Dubai's office real estate market continue to rise. Q1 2025 saw a jump of 24.5 percent year-on-year and an increase of 6.5 percent 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. In addition, rental rates increased by similar amounts: 24 percent year-on-year and 6.7 percent compared to Q4 2024, with average office rates reaching AED160 psf.
Hikes were also seen across all quality tiers of offices, with a 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 percent. Next were DIFC at 39 percent and Barsha Heights at 38 percent.
Top areas for office sales
Business Bay commanded the number one spot for office sales in Dubai's real estate market (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).
Almost half 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 percent of sales, while spaces from 2,001-5,000 sq ft accounted for 10 percent. The remaining 2 percent were for areas covering over 5,000 sq ft.
Read| Dubai real estate: Property prices surge 24.7 percent in May 2025
Upcoming 215,000 sq m of supply
As of Q1 this year, Dubai's total office inventory reached nearly 9.3 million square meters 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.
'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,' added Shah.
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