Dubai’s office market recorded a surge in gross sales values and transaction volumes within the first half of 2025, with traders more and more favouring ESG-aligned belongings and trendy, high-quality workplace house.
Based on a brand new report by Cavendish Maxwell, workplace gross sales values rose 84 per cent year-on-year to AED 5.4 billion throughout 1,900 offers, marking the best half-year exercise since 2014.
Transaction volumes have been up 22 per cent in contrast with the identical interval final 12 months, reflecting sturdy demand in each prime workplace and logistics segments.
Dubai added 34,000 sq. metres of recent workplace house between January and June, bringing the entire gross leasable space to 9.32 million sq. metres. A further 110,000 sq. metres is predicted by the tip of 2025, with 340,000 sq. metres forecast for 2026, the report mentioned. By 2028, the entire gross leasable space in Dubai’s workplace market is projected to succeed in 10.85 million sq. metres.
Vidhi Shah, Director and Head of Industrial Valuation at Cavendish Maxwell, mentioned: “Dubai’s funding panorama continues to flourish, additional cementing the emirate’s standing because the UAE’s main financial hub – and a world vacation spot for enterprise. In H1 this 12 months, Dubai attracted greater than 500 new FDI initiatives, securing over AED 11 billion in capital inflows, whereas the DIFC registered greater than 1,080 new companies – an increase of 32 per cent year-on-year.”
“With sturdy authorities backing and sustained investor confidence, Dubai’s workplace market continues to ship an excellent efficiency, with but extra data for gross sales volumes and values. This momentum is predicted to proceed, with a wave of recent provide additional strengthening the market and providing patrons and renters extra flexibility,” he added.
Gross sales and rental progress
Workplace gross sales costs rose 22.2 per cent year-on-year to AED 1,748 per sq. foot, whereas rents elevated 26.4 per cent on common and by almost 35 per cent in prime districts. In contrast with the second half of 2024, gross sales costs rose nearly 13 per cent, and rents by 10 per cent, reflecting a robust urge for food for premium workplace house.
Prime districts resembling DIFC and Downtown Dubai recorded rental progress of 35 per cent and 33.5 per cent, whereas older hubs resembling Bur Dubai, Deira and Healthcare Metropolis noticed extra modest will increase of three.8 per cent, 2.6 per cent and a couple of.2 per cent, respectively. Traders and occupiers are more and more concentrating on A-grade buildings with trendy facilities and ESG credentials.
Off-plan market surges
Whereas prepared workplace models accounted for 85 per cent of transactions, off-plan gross sales gained traction, rising nearly 180 per cent year-on-year and 90 per cent in contrast with the second half of 2024. Rising demand for contemporary, innovation-led and ESG-aligned developments is driving the off-plan market.
Enterprise Bay retained its place as the highest gross sales location, with 672 transactions, adopted by Jumeirah Lakes Towers with 534 offers, Motor Metropolis with 216, Barsha Heights with 160, and Dubai Silicon Oasis with 77. Places of work of 1,000 to 2,000 sq. toes represented 48 per cent of gross sales, models beneath 1,000 sq. toes made up 39 per cent, 2,000 to five,000 sq. toes accounted for 12 per cent, and areas above 5,000 sq. toes comprised 2 per cent.
Dubai’s workplace market presently gives 9.32 million sq. metres of gross leasable space, with 110,000 sq. metres as a consequence of come on-line by the tip of 2025 and an additional 340,000 sq. metres in 2026. Lengthy-term forecasts point out one other 1 million sq. toes of workplace house will probably be delivered in 2027 and 2028, growing whole stock to 10.85 million sq. metres.
“Whereas the event pipeline seems sturdy, completion timelines might differ. Occupancy charges are prone to stay excessive within the brief time period, with most new provide anticipated between 2026 and 2028, when value pressures on gross sales and leases might ease,” Shah mentioned.