Dubai office values reportedly double to AED 13.1bn amid supply shortfall

Transaction values in Dubai’s office market rose by more than 100 per cent in 2025, according to Cavendish Maxwell, as limited new supply and business expansion drove prices and rents higher

Dubai’s office market reportedly recorded its strongest year since 2014 in 2025, with transaction values reaching AED 13.1 billion and volumes rising sharply.

A report by consultancy Cavendish Maxwell found that transaction volumes increased by 53.6 per cent year-on-year to approximately 4,600 units, while total sales values rose by 102.3 per cent from AED 6.5 billion in 2024 to AED 13.1 billion in 2025.

Average office sales prices reportedly climbed by 25.9 per cent to AED 1,951 per square foot. Citywide rental rates were said to have increased by 22.9 per cent over the same period.

Cavendish Maxwell attributed the performance to strong demand from occupiers and investors, combined with constrained supply. The report stated that only around 87,000 square metres of office space was delivered in 2025 from a projected pipeline of 224,000 square metres, representing a materialisation rate of 39 per cent. Total office stock reached 9.4 million square metres, up 0.9 per cent from 2024.

Off-plan transactions were reported to have increased from around 177 in 2024 to 1,400 in 2025, accounting for 31 per cent of total sales volume. Off-plan transaction values rose from AED 0.7 billion to AED 4.6 billion year-on-year. Ready office sales transactions increased by 12.7 per cent to approximately 3,100 units, with values rising by 46.2 per cent and average transaction prices moving from AED 2.1 million to AED 2.7 million.

Activity in the ready segment was reportedly concentrated in Business Bay and Jumeirah Lakes Towers, which together accounted for 73.1 per cent of ready transactions. In the off-plan segment, Motor City, Jumeirah Village Circle, Business Bay, Dubai Sports City and Majan collectively accounted for 73.8 per cent of transactions.

The report also cited broader economic expansion. The Dubai Chamber of Commerce registered 71,830 new member companies during 2025, taking total active membership to 292,486, a 13.2 per cent increase year-on-year. The consultancy said 373 international companies established operations in Dubai during the year, an increase of 80.2 per cent compared with 2024.

In comments included in the report, Vidhi Shah, Director and Head of Commercial Valuation at Cavendish Maxwell, said: “The 2025 performance of Dubai’s office market signals more than a cyclical rebound. It reflects a maturing ecosystem supported by economic diversification, global corporate expansion and constrained Grade A availability. As demand broadens across submarkets, we expect rental resilience and capital appreciation to remain firmly supported.”

Looking ahead, Cavendish Maxwell stated that around 300,000 square metres of office space is projected for 2026, though actual deliveries are expected to range between 90,000 and 140,000 square metres based on historical completion patterns. The firm said supply constraints, alongside continued business formation, are expected to support rental growth, while noting risks including potential supply acceleration, global economic headwinds and geopolitical developments.

READ MORE: ‘Saudis pitch trillion-dollar property boom to global investors‘. A reported US$1.7 trillion construction drive took centre stage at Europe’s largest property fair in October, where the Kingdom unveiled flagship Vision 2030 projects and confirmed sweeping reforms to open its real estate market to foreign buyers.

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