Dubai office prices rise nearly 9% as Downtown Jebel Ali leads sales

Dubai, UAE - Office sales prices in Dubai climbed to an average $546 (AED 2,005) per square foot in Q3 2026, an increase of nearly 9% compared to the same period last year, according to leading real estate advisory and property consultancy, Cavendish Maxwell.

Investors spent $1.17 billion (AED 4.3 billion) across 1,100 office transactions from July to September this year, with Downtown Jebel Ali emerging as Dubai’s top location for sales activity, the company said.

Sales values were up almost 40% on Q3 2025 but down 42% against Q2. The number of Q3 transactions was 11.5% higher than in Q2, but down 3.6% year-on-year, according to Cavendish Maxwell’s latest analysis of Dubai’s office real estate performance.

The quarterly decline in transaction values is largely the result of fewer high-value sales: more than 200 office deals worth $2.72 million (AED 10 million) or more were recorded in Q2, compared with around 80 in Q3, Cavendish Maxwell added.

Average rent rates rose 6.5% year-on-year to reach $51 (AED 187.5) psf.

Off-plan sales took the majority market share in Q3 2026, with around 700 transactions representing 63% of all sales. A year ago, ready office transactions accounted for nearly 66% of sales, highlighting how an increase in new launches has significantly changed the composition of office purchase activity.

While sales prices and rental rates increased year-on-year, both eased marginally for the second consecutive quarter, indicating a market moderation after strong growth in 2024 and 2025.

Vidhi Shah MRICS, Director, Head of Commercial Valuation at Cavendish Maxwell, said: “Dubai’s office market demonstrated a mixed performance in Q3 2026, with transaction volumes showing signs of recovery following a subdued Q2, but still below the elevated levels recorded earlier in the year. Meanwhile, price and rental growth are moderating, signalling a period of market normalisation following sustained growth in recent quarters. Looking ahead, a degree of uncertainty remains regarding the market’s near-term trajectory, with performance over the coming quarters expected to provide greater clarity on emerging trends and the broader market outlook.”

Cavendish Maxwell’s latest insight also shows that in Q3 2026:

• 44,100 square metres of new office space was delivered, bringing total deliveries since January to 136,400 sq m
• Downtown Jebel Ali moved into the number one spot for office sales activity, with 326 transactions
• DIFC saw the biggest rent hike, at 14.7%, more than double the average increase
• Small to mid-sized units (less than 2,001 sq ft) dominated sales activity, accounting for more than 80% of off-plan transactions and over 88% of ready sales

New supply

Some 44,100 square metres of new office space was delivered in Q3, bringing total deliveries since January to 136,400 sq m and Dubai’s total office stock to more than 9.5 million sq m. Another 106,400 sq m is due to come to the market by the end of the year, with an additional 400,000 sq m in 2027 and 528,000 sq m in 2028.

However, project deliveries for 2028 have been revised, with some developers pushing handover dates to 2029, highlighting the impact of construction delays and extended delivery timelines, particularly among large-scale projects at the early stages of construction.

Top sales locations

Downtown Jebel Ali overtook Business Bay to become the hottest location for office sales in Q3, with 326 transactions, all within the off-plan segment, representing almost 30% of all Dubai sales. Downtown Jebel Ali’s new launches, including Raw District by Imtiaz and Samana Business Hub, were major contributors.

In second place was Business Bay, which recorded 271 sales (off-plan and ready), followed by Jumeirah Lakes Towers (160), Motor City (70) and Dubai Sports City (41).

DIFC dominates rent hikes

DIFC recorded the highest rent hikes, at 14.7%, more than double the Dubai average increase of 6.5%. Next was Barsha Heights at 9.1%, followed by Downtown Dubai at 8.1%. Business Bay and Jumeirah Lakes Towers also commanded higher-than-average rent increases.

Size matters

In the off-plan segment, demand for offices of less than 1,000 sq ft rose more than 190% compared to Q3 last year, accounting for more than half (53%) of total sales from July to September 2026. Off-plan activity also increased across larger units, with a 376% surge in premises between 2,001 sq ft and 5,000 sq ft.

The ready office segment was dominated by mid-sized offices (1,000 sq ft to 2,000 sq ft), which made up over half (52.6%) of ready sales.