Dubai office market hits new $843m sales high in Q3 2025 as off-plan demand accelerates

The Dubai office market continued its upward trajectory in Q3 2025, recording AED3.1bn ($843m) in sales — a rise of nearly 90 per cent compared with the same period last year, according to Cavendish Maxwell.

Strong demand, limited supply and accelerating off-plan activity have driven the market into one of its most active phases in recent years.

Between July and September, almost 1,200 sales transactions were completed, marking an increase of almost 40 per cent year-on-year and nearly 20 per cent compared with Q2 2025.

Off-plan office market in Dubai

Off-plan sales values surpassed AED1bn ($272m) for the first time in 15 years, with the number of off-plan transactions quadrupling compared with Q3 last year.

Cavendish Maxwell noted that investors are increasingly targeting next-generation office space with efficient layouts, ESG-aligned specifications and attractive payment plans.

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 224,000 sqm of new space was initially scheduled for delivery this year, but statistics show that only 80,000 came to market between January and September, with another 40,500 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 9.36 million sqm of GLA, and we predict an acceleration in supply from 2026 onwards, with total inventory forecast to reach nearly 10.9 million sqm by 2028.”

Average office sales prices increased 25.2 per cent year-on-year, reaching AED 1,800 ($490) per square foot, supported by strong demand from both investors and end users and by structurally limited supply.

Top locations for office sales in Q3 2025

• Business Bay: 328 office transactions
• Jumeirah Lakes Towers (JLT): 277
• Majan: 112
• Jumeirah Village Circle (JVC): 110
• Barsha Heights: 71

Together, these five locations accounted for almost 80 per cent of all office sales in Q3.

Office rents rising

Dubai’s office rental market also recorded strong growth, with average rents increasing by almost 30 per cent, although performance varied significantly by area.

• DIFC: rents up 35.5 per cent
• Downtown Dubai: rents up 33.9 per cent
• Barsha Heights: rents up more than 27 per cent
• Dubai Hills Estate: rents up more than 27 per cent
• Bur Dubai: rents up 4.2 per cent
• Deira: rents up 3.3 per cent

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