Dubai’s Office Market Sees Remarkable Growth in 2025

The landscape of Dubai’s real estate market has shifted dramatically in 2025, with notable advancements in the office segment. According to a recent report by Cavendish Maxwell, the city’s office sales values surged to AED 13.1 billion (approximately $3.57 billion), marking the strongest annual growth since 2014.

Office Sales Values and Transactions Rise

In a remarkable turn of events, office sales values increased by 102% compared to 2024, while transaction volumes soared by over 53%, reaching approximately 4,600 deals last year. “Dubai’s office market experienced exceptional performance in 2025,” explained Vidhi Shah MRICS, Director and Head of Commercial Valuation at Cavendish Maxwell. He emphasized that a combination of escalating prices, an influx of transactions, and a consistent increase in rental prices reflects Dubai’s growing allure as a global business hub.

Explosive Growth in Off-Plan Activity

Nearly 700% Increase in Off-Plan Sales

One of the standout highlights of the report is the almost 700% growth in off-plan activity within Dubai’s office market in 2025 compared to the prior year. This growth was primarily fueled by a limited supply of ready-made office spaces and favorable pricing strategies that welcomed investors into the market. The average sales price for off-plan office space reached AED 1,951 per square foot, a 26% increase from 2024. Furthermore, average rental rates jumped by 23%, with certain key locations experiencing increases over 30%.

Future Trends in Off-Plan Market

Looking ahead, analysts expect the off-plan segment to maintain its momentum as developers cater to the increasing demand. Given that high-quality office space remains in short supply, prospective buyers will continue to seek out new off-plan options as viable entry points into the vibrant market.

Inventory and Supply Dynamics

New Office Spaces Coming to Market

In 2025, Dubai welcomed 87,000 square meters of new office space, which represents 39% of the initially projected 224,000 square meters. With the total office supply now at 9.4 million square meters—equivalent to more than 1,300 football pitches—future expectations are high. An additional 300,000 square meters is anticipated to enter the market in 2026. However, based on historical trends, actual completions may only range between 90,000 to 140,000 square meters, with some projects potentially pushing into 2027 and later.

Market Conditions Favoring Landlords

The limited pipeline of new office spaces, combined with strong demand from businesses and economic growth, is likely to result in market conditions that favor landlords in 2026. As this trend continues, rental prices are expected to rise, particularly in desirable locations where quality office spaces are hard to come by.

Key Areas for Office Transactions

Business Bay Leading the Pack

In terms of transactions, Business Bay and Jumeirah Lakes Towers emerged as the top contenders, with 1,230 and 1,067 sales, respectively. Together, these two locations accounted for over 73% of all office transactions in Dubai. Barsha Heights followed closely with 267 sales, while Dubai Silicon Oasis and Dubai Investments Park also garnered significant activity.

Off-Plan Market Leaders

In the off-plan category, Motor City took the lead with 290 sales, followed by Jumeirah Village Circle, Business Bay, Dubai Sports City, and Majan. These regions collectively contributed to nearly 74% of all off-plan sales, showcasing the strong buyer interest in various segments of the market.

Rising Rents in Prime Locations

Record Increases in DIFC and Downtown Dubai

DIFC (Dubai International Financial Centre) and Downtown Dubai reported the most significant rent increases in 2025, with rises of 35% and 33%, respectively, both exceeding the citywide average of 23%. The demand for prestigious office locations, combined with dwindling Grade A stock, underpinned these increases.

Broad Rental Trends Across Multiple Areas

Barsha Heights also saw substantial rent hikes of up to 33%, while other areas like Dubai Hills Estate, Business Bay, and Jumeirah Lakes Towers experienced increases ranging from 25% to 27%. In contrast, older districts such as Bur Dubai and Deira witnessed modest growth in rental prices, with increases of 5% and 2.5%.

Closing Insights on Market Performance

As Dubai’s office market transitions into 2026, the dynamics established in 2025 are likely to persist. The off-plan sector, which accelerated impressively last year, is expected to remain robust as developers align their offerings with the growing demand. With quality ready stock remaining constrained, the off-plan offerings will continue to attract buyers looking for effective entry points in the market.