Dubai developers return to selling office space to individual investors
'There was a time when entire office buildings in Dubai were sold off-plan. Over time, the model shifted toward developers constructing buildings solely for rental purposes, moving away from strata ownership,' said PP Varghese, head of professional services at Cushman & Wakefield Core.
'After 2010, we saw a return to strata ownership, where individual investors could purchase office units within developments. However, that again changed following the economic downturn, with developers choosing to retain full ownership and lease to corporate tenants. Independent ownership largely disappeared. Now, we're seeing a shift back — office buildings are being sold off-plan once more, much like residential properties,' he told Khaleej Times.
Varghese attributed this trend to renewed investor confidence in the office sector, supported by strong performance indicators. 'There's a robust belief in the segment, with average occupancy rates hovering around 92 per cent and 95 per cent for Grade A offices,' he noted.
'From 2013 to 2015, confidence in the office market was low, prompting developers to avoid strata sales. But the situation has changed. The market is much more resilient now, and individual investors are re-engaging. That's why developers are reintroducing this product.'
The re-emergence of commercial off-plan sales is primarily occurring in fringe submarkets like Arjan and Motor City, Varghese added.
'While this creates strata-based inventory for small and medium-sized enterprises (SMEs), it doesn't alleviate the shortage of institutionally owned Grade A stock — the type preferred by global tenants and institutional investors,' he said in the firm's mid-year 2025 market update.
Developers are also financially incentivised to pursue sales. 'If developers can achieve the right sales price, they can recover capital faster. From a return-on-investment perspective, it becomes a more lucrative strategy,' Varghese explained.
Landlords in control
Real estate consultancy JLL also reported growing appetite among developers to build new office stock and refurbish outdated assets to take advantage of supply-demand imbalances.
'Landlords are substantially raising quoted rents, creating a widening gap between asking prices and tenant expectations,' JLL noted.
Dubai's office market continues to attract strong interest from both newly established local startups and international corporations looking to establish a presence in the emirate.
According to Cushman & Wakefield Core, key districts such as Dubai International Financial Centre (DIFC), One Central, Sheikh Zayed Road, and Dubai Design District (D3) are nearing full occupancy.
This surge in demand has driven up office rental rates, with average rents reaching Dh190 per square foot — a 22 per cent year-on-year increase. In Q1 2025, prime office rents rose by 14.2 per cent, reflecting robust market conditions.
Real estate brokerage Cushman & Wakefield Core's forecasts indicated that just 0.89 million square feet of new commercial space is expected to be delivered in 2025. However, the pipeline expands significantly in 2026 and 2027, with a combined 6.4 million square feet currently under development.
According to JLL, most of this upcoming supply is concentrated in prime locations and will predominantly feature Grade A specifications.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
12 minutes ago
- Zawya
Ajman University launches Masar Career Excellence
Ajman – Ajman University has launched Masar Career Excellence, a pioneering model that redefines how universities in the UAE prepare students for the future of work. As the first framework of its kind in the country's higher education sector, Masar goes beyond the scope of a traditional career services office. It offers an integrated, future-focused approach to student development, aligning academic experience with real-world readiness from day one through life after graduation. Rooted in the Arabic word مسار (masar), meaning the path, Masar Career Excellence is designed to accompany students and alumni through every stage of their academic and professional development. From early career orientation and skills training to long-term mentoring, employer engagement, and alumni networking, Masar offers a cohesive and holistic experience that empowers students to align their aspirations with real-world opportunities. Commenting on this innovative initiative, Dr. Karim Seghir, Chancellor of Ajman University, stated: ' Masar embodies Ajman University's belief that preparing students for the future requires more than academic excellence. It calls for an environment where purpose, reflection, and real-world engagement are embedded into the educational experience. Through this model, we aim to graduate individuals who are not only capable professionals, but also thoughtful leaders with a deep sense of responsibility to society.' The introduction of Masar marks a major milestone in Ajman University's broader strategy to embed career development into the heart of the educational experience. This commitment has earned the university global recognition. According to the QS World University Rankings 2026, Ajman University is ranked #3 in the UAE for employer reputation, a reflection of the institution's sustained focus on producing career-ready graduates. Masar is aligned with We the UAE 2031 and Ajman Vision 2030, both of which emphasize the development of national talent, the advancement of a knowledge-based economy, and the empowerment of youth to lead transformative change across sectors. By strengthening the capabilities of graduates to adapt, innovate, and lead, Masar contributes to the nation's priorities for inclusive and sustainable development. Throughout the student lifecycle, Masar delivers tailored guidance from early exploration of interests and pathways, to mid-program industry placements, and career coaching as graduation nears. The model continues beyond graduation, offering alumni access to mentoring, professional growth opportunities, and lifelong engagement. A defining characteristic of Masar is its emphasis on meaningful connection. By fostering collaboration between students, faculty, alumni, and industry leaders, the framework offers real-world immersion through career fairs, live projects, consulting challenges, and expert panels. These experiences cultivate not only technical competencies but the relationship capital essential for leadership and long-term success. The launch of Masar Career Excellence reinforces Ajman University's position as a forward-thinking institution that places student success at the core of its mission. It reflects a strategic approach to higher education—one that empowers graduates to shape their futures with purpose and contribute meaningfully to a resilient, inclusive, and knowledge-driven society. About Ajman University Established in 1988 as the first private university in the GCC, Ajman University (AU) is a non-profit institution committed to delivering world-class education and empowering future leaders. With a strong emphasis on academic excellence, global engagement, and societal impact, AU continues to shape a diverse and inclusive learning environment that nurtures innovation and integrity. Ajman University earned full accreditation from the WASC Senior College and University Commission (WSCUC) in 2024, becoming the first private and non-profit university in the UAE and the Arab world to achieve this prestigious distinction. In the 2026 QS World University Rankings, AU ranks #440 globally and #6 in the UAE, with a global ranking of #241 for Employer Reputation and #3 in the UAE. AU also holds the #1 position in the UAE and #4 globally for the percentage of international students. With a growing network of over 40,000 alumni across the world, AU continues to prepare graduates who are career-ready, globally aware, and committed to shaping a better future for their communities and beyond. For more information, please visit For further information, please contact: Orient Planet Group (OPG) Email: media@ Website:
Zawya
12 minutes ago
- Zawya
Binghatti Holding H1 2025 profit surges almost threefold to record AED 1.82bln
H1 2025 Key Highlights Net Profit Jumps 172% YoY to AED 1.82 billion Total Sales Increase 60% YoY to AED 8.8 billion Revenue Advances 189% YoY to AED 6.3 billion 61% of Sales to Non-Residents, Underscoring Dubai's Status as a Global Safe Haven Seven Projects Launched and Four Delivered, Demonstrating Speed and Execution Strength BinGhatti Capital Launched, Targeting USD 1 Billion in Private Credit and Real Estate Strategies Major Megaplot Acquired in Nad Al Sheba 1 for First Master-Planned Community Strong Pipeline for H2, with Market Fundamentals Remaining Robust Muhammad BinGhatti, Chairman ' The first half of 2025 has been a period of exceptional growth for Binghatti Holding and the extraordinary year-on-year growth of our net profit and revenue is a reflection of the market's confidence in our differentiated model, one that is built around architectural excellence, speed of execution, and integrated value creation across the entire real estate ecosystem. As Dubai continues to attract global capital and high-net-worth individuals, our developments have become increasingly relevant to an international audience. The rising share of non-resident buyers speaks volumes about both our reach and Dubai's position as a safe, fast-growing investment destination. Meanwhile, our expansion into regulated asset management through the launch of Binghatti Capital is an operational milestone that represents a leap forward in how we fund and structure our expanding development portfolio. With the acquisition of our Nad Al Sheba megaplot, we are laying the foundations for our next chapter, one that will be defined by creating master-planned curated communities that will shape the future of luxury living.' Katralnada Binghatti, CEO 'Our H1 2025 results and operational achievements underscore the discipline, agility, and long-term thinking that drive every aspect of our business. Launching seven projects and handing over four in just six months demonstrates our operational leadership in the market and our deep commitment to on time delivery. Our growing backlog, diversified landbank, and expanding portfolio of unique branded residences created in partnership with global icons Bugatti, Mercedes-Benz Jacob & Co. provide the market with luxury living, investment value and architectural distinction. BinGhatti Holding sets itself apart in the market by being active across the entire real estate ecosystem, from land acquisition and architectural design, through construction, sales, and aftercare, all the way to capital structuring and institutional fundraising. In this regard, the launch of Binghatti Capital, a DFSA-regulated firm headquartered in DIFC, adds a further dimension to our dynamic business model, giving us the regulatory and operational infrastructure to offer institutional-grade investment solutions. Binghatti Capital's private credit and real estate strategies will allow us to attract and deploy capital in a targeted manner while reinforcing the Group's integrated approach to real estate development. With continued robust demand for Dubai real estate amid the steady growth of the Emirate's population, and a strong funding platform in place, we are well-positioned to meet the rising demand for across the entire real estate product spectrum.' Dubai, UAE – Binghatti Holding Ltd, a leading UAE luxury real estate developer, reported record financial results for the first half of 2025, with year-on-year profit and revenue almost tripling, driven by the continued demand for Binghatti developments. Net profit in the first half of 2025 rose 172% year-on-year to AED 1.82 billion, compared to AED 668 million in the same period last year. Total sales reached AED 8.8 billion, representing a 60% year-on-year increase, while revenue surged almost threefold to AED 6.3 billion, making the Company one of the fastest growing in Dubai's real estate market. The Group also saw strong expansion of its development pipeline. As of 30 June 2025, Binghatti's revenue backlog reached AED 12.5 billion, compared to AED 6.6 billion in the same period last year. The surge in backlog was driven by the launch of seven new projects, while five projects were successfully delivered during the first half, handing over 1,441 units into the market. Branded Residence Drive Global Investor Demand Binghatti's flagship branded residences, developed in collaboration with world-renowned luxury partners Bugatti, Mercedes-Benz, and Jacob & Co. continue to resonate with global customers. The Company's ability to blend architectural innovation with iconic design has attracted an elite international clientele, including Brazilian football star Neymar Jr. and acclaimed opera singer Andrea Bocelli, reflecting Binghatti's status as the preferred ultra-luxury brand for investors around the round the world. In H1 2025, 61% of Binghatti's sales were made to non-resident buyers, up from 55% a year earlier, underscoring Dubai's safe-haven appeal and BinGhatti's pro-active marketing, which include the launch of a London sales office in July. Leading buyer nationalities in H1 2025 included India, Turkey and China. Supporting Strong Local Demand Through Strategic Financing Solutions, PropTech While international investors continue to play a growing role in driving sales, Binghatti also continued to benefit from strong local demand, supported by the UAE's expanding population, and ongoing investment in infrastructure and housing accessibility. The Company continued to broaden its domestic customer base by improving affordability and access to high-quality real estate developments. In May 2025, Binghatti signed a landmark Memorandum of Understanding with Abu Dhabi Islamic Bank (ADIB) to offer Sharia-compliant home financing solutions tailored to both ready and off-plan residential units. Under the agreement, eligible buyers will be able to secure financing once construction reaches 35% completion and 50% of payments have been made, a flexible structure designed to unlock new demand among UAE-based homeowners and investors. To further support access to homeownership, Binghatti Holding was selected in July by the Dubai Land Department (DLD) and the Dubai Department of Economy and Tourism (DET) as one of 13 developers participating in the newly launched First-Time Home Buyer (FTHB) Programme. As part of this initiative, Binghatti has committed to allocating at least 10% of its newly launched and existing residential units priced under AED 5 million exclusively to eligible first-time buyers. The earmarked units will be made available ahead of public launches, ensuring early access and greater affordability for UAE residents entering the property market for the first time. In addition to prioritised access, Binghatti is offering exclusive financial incentives to FTHB participants, including discounts on selected properties and reduced administrative fees, with enhanced packages for both Emiratis and expatriates. The initiative supports Dubai's broader economic and social development goals, including the D33 Economic Agenda which targets AED 1 trillion in real estate transactions In July, Binghatti also became a founding partner of the Dubai PropTech Hub, a joint initiative of the DIFC Innovation Hub and the Dubai Land Department. The Hub, which aims to attract $300 million in venture capital by 2030, will position Binghatti at the forefront of real estate innovation through access to emerging technologies such as AI, blockchain, and sustainable smart infrastructure. As a founding partner, Binghatti will benefit from early engagement with next-generation PropTech start-ups through the Hub's Living Lab, Scale-up Accelerator, and bespoke innovation programs. Accelerated Development and Landmark Land Acquisition Binghatti currently has around 20,000 units under development across about 30 projects in prime residential areas across Dubai, including Downtown, Business Bay, Jumeirah Village Circle, Al Jaddaf, Meydan, Dubai Science Park, Dubai Production City, and Sports City. During the first half, Binghatti launched seven new projects featuring 5,000 units spread over 3.8 million square feet and and handed over five developments comprising 1,441 units over 1 million square feet. The company acquired a landmark megaplot in Nad Al Sheba 1, in the heart of Dubai's sought-after Meydan district with over 9 million square feet of gross floor area, which will serve as the foundation for its first master-planned residential community in Dubai with a total development value of over AED 25 billion. Strengthened Credit Profile Recognised by Global Rating Agencies In the first half of 2025, Binghatti's credit profile was formally recognised by leading global rating agencies. In March, Moody's Ratings assigned Binghatti a first-time Ba3 Corporate Family Rating (CFR) with a stable outlook, citing the Company's strong market position in Dubai's luxury real estate sector, its vertically integrated operating model, and prudent financial management. The agency highlighted Binghatti's low leverage, strong liquidity, and effective cost control as key credit strengths, alongside its strategic expansion through branded developments and a deep pipeline of projects. Shortly after, Fitch Ratings upgraded Binghatti's Long-Term Issuer Default Rating (IDR) and senior unsecured debt to BB- from B+, also with a stable outlook. The upgrade reflected Binghatti's resilient growth trajectory, robust liquidity - including a low net debt-to-EBITDA ratio of just 0.8x - and its ability to self-fund future projects through internally generated cash flows. Both agencies recognised the Company's strengthened corporate governance framework and the institutional credibility brought by its inaugural USD 500 million sukuk, which is listed on both the London Stock Exchange and Nasdaq Dubai. Positive Outlook Amid Structural Supply Constraints Dubai's real estate market continues to show structural strength, supported by a growing population, stable governance, and surging global investor interest. As of June 2025, Dubai's population surpassed 3.75 million and is expected to exceed 4 million by the end of 2026. In the first half of 2025 alone, over 19,700 new residential units were handed over, primarily in JVC, Al Merkadh and Business Bay. However, delivery across core and premium submarkets has not kept pace with demand. This gap is even more evident in the luxury and branded segment, where sustained demand continues to drive strong absorption rates. Rental values in prime zones such as Marina, Business Bay, and Downtown Dubai are up significantly year-on-year, clear indicators of supply pressure and investor appetite. About Binghatti Holding Ltd.: Binghatti Holding Ltd. is a renowned Emirati brand in the real estate development sector, holding a leading position with a portfolio exceeding 80 projects valued at over AED 70 billion. Binghatti Holding is led by Chairman Muhammad BinGhatti, whose innovative vision aims to deliver luxurious projects that reflect refined artistic taste and high standards in design and quality. Binghatti Holding has successfully delivered over 12,000 residential units since inception, achieving remarkable milestones in collaboration with global brands such as Bugatti, Mercedes-Benz, and Jacob & Co. Binghatti Holding continues to expand its real estate portfolio to meet the growing market demands, focusing on delivering residential projects that elevate the level of luxury in Dubai. Further Information for Investors: For further information on Binghatti Holding its investment capabilities, please visit our website ( Elena Ponceca Head of Investor Relations Binghatti Holding ir@ Further Information for Media: Mahmoud Kassem Brunswick mkassem@
Khaleej Times
12 minutes ago
- Khaleej Times
Abu Dhabi: Stunning light sphere, AI fountain show to light up Al Maryah Waterfront
Abu Dhabi has launched the Al Maryah Waterfront project, a new attraction that will blend technology, design, and culture with a luminous 30-meter sphere and 1,000 AI-powered water jets choreographed to music. Mubadala Investment Company PJSC (Mubadala), on Sunday announced the official commencement of the Al Maryah Waterfront enhancement project, a monumental development that will transform Al Maryah Island lifestyle offerings and experiences, while further bolstering Abu Dhabi's standing as a premier global destination. The project will deliver a suite of world-class features and amenities meticulously designed to elevate the guest experience and unlock new opportunities for lifestyle, entertainment and engagement. At the heart of the project is a 30-metre-tall luminous sphere, enveloped in flowing water and set within the bay, surrounded by over a 1000 AI-powered jets of water soaring more than 75 meters skyward in dazzling choreography to music by acclaimed composer Ramin Djawadi. These features are designed by WET, the premier water design firm in the world. The development also includes: A sea boardwalk extension providing the guests access to the water's edge A shaded outdoor cooling system, enhancing comfort during hot seasons New F&B zones and event-ready public spaces elevating the guest experience The groundbreaking was officiated by Waleed Al Mokarrab Al Muhairi, Mubadala's Deputy Group CEO, who was joined by Dr Bakheet Al Katheeri, CEO of UAE Investments, as they jointly broke ground to mark the start of the project. "The Al Maryah Waterfront enhancement project is a strategic investment in the future of Al Maryah Island' said Dr Bakheet Al Katheeri, CEO of UAE Investments, Mubadala. 'This project will deliver iconic elements that elevate the quality of life and offer a diverse experience for visitors, while reinforcing the island's position as a premier lifestyle destination.' Once completed, the Al Maryah Waterfront will serve as a dynamic backdrop for public life, designed to attract global visitors, support the capital's tourism ambitions, and provide premium opportunities for leisure, culture, and commercial activation. This project is part of Mubadala's broader commitment to enabling the emirate's long-term vision of a sustainable, globally competitive, and future-ready urban landscape.
