Dubai office sales transactions hit $844M record

Dubai, UAE: Dubai’s office market has hit another new record, with USD 844 million (AED 3.1 billion) worth of sales in Q3 2025 – an increase of nearly 90% on the same time last year – says leading real estate advisory and property consultancy, Cavendish Maxwell.

Off-plan sales values surpassed the USD 272 million (AED 1 billion) mark for the first time in 15 years, with the number of transactions in the off-plan segment quadrupling compared to the same period last year, the company said.

Almost 1,200 sales deals were secured between July and September – a rise of almost 40% year-over-year and nearly 20% up on Q2, according to Cavendish Maxwell’s latest insight and analysis of Dubai’s office real estate market.

Vidhi Shah, Director, Head of Commercial Valuation at Cavendish Maxwell, said: “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.

“However, despite this strong demand, supply remains tight. More than USD 61 million (AED 224,000 sqm) of new space was initially scheduled for delivery this year, but statistics show that only USD 22 million (AED 80,000 sqm) came to market between January and September, with another USD 11 million (AED 40,500 sqm) 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 USD 2.55 billion (AED 9.36 million sqm) of GLA, and we predict an acceleration in supply from 2026 onwards, with total inventory forecast to reach nearly USD 2.96 billion (AED 10.9 million sqm) by 2028,” she added.

Sales prices rose by more than a quarter (25.2%) year-on-year, hitting an average of USD 490 (AED 1,800) per square foot, with robust investor and end-user demand, combined with limited supply, fuelling sustained price appreciation.

With 328 transactions, Business Bay retained its spot as the top location for office sales, followed by Jumeirah Lakes Towers with 277 deals. New areas like Majan entered the top five locations for the first time, with 112 transactions. Jumeirah Village Circle secured 110 sales and Barsha Heights 71. These five areas accounted for almost 80% of all sales in Q3.

Office rental rates also climbed by almost 30% on average, but there were wide variations depending on area. The highest increases were at DIFC and Downtown Dubai, with rents up 35.5% and 33.9% respectively, driven by strong demand for centrally located, high-quality premises. Secondary locations like Barsha Heights and Dubai Hills Estate also did well, with rents up by more than 27%. Mature areas with lower-quality assets – such as Bur Dubai and Deira – saw more modest rent rises of 4.2% and 3.3%.

Vidhi Shah added: “The divergence in office rents highlights a tiered market structure, with prime locations commanding premium growth due to limited supply and strong tenant demand, while well-positioned secondary areas are reaping the benefits of displaced demand while offering value-for-money, alternative accommodation.”