Dubai Office Property Sales Soar to AED 2.8B in Q1 2025, Setting New Highs

🚀 Dubai Office Property Sales Soar to AED 2.8B in Q1 2025, Setting New Highs

Dubai, UAE – The city’s office real estate sector recorded its strongest quarterly performance ever in Q1 2025, with investors spending AED 2.8 billion ($762.4 million) across 933 transactions, a new record in sales volume and value, according to Cavendish Maxwell.

Compared to the same period in 2024, total sales value jumped 83%, and transaction count grew by 24%. The trend reflects increasing demand from both multinational corporations and local businesses looking to secure prime office space.

“These record results underline Dubai’s growing stature as a global business hub,” commented Vidhi Shah, Head of Commercial Valuation at Cavendish Maxwell.
“We also saw nearly 40% more foreign companies register in Q1 ‑ boosting demand for office property.”

📈 Off-Plan Explosion: 741% Jump

Off-plan office sales skyrocketed from AED 100 million to AED 800 million—a 741% year-over-year surge. Ready offices still dominate, but off-plan made up 18% of transactions in Q1 2025, up from 8% in Q1 2024.

Shah noted that investors are drawn by competitive launch prices, phased payment plans, and projected capital gains—especially in light of rising rental costs.

🏢 Average Office Prices & Rental Rates Surge

Office sales prices climbed 24.5% year-on-year and 6.5% from Q4 2024, reaching AED 1,650 per square foot (up from AED 1,325). With average rental rates around AED 160 psf, rental values also rose by 24% year-over-year and 6.7% sequentially.

High-end spaces saw the greatest value gains:

• Downtown Dubai: +40% YoY

• DIFC: +39%

• Barsha Heights: +38%

📍 Most Active Office Districts

• Business Bay: 316 office deals

• Jumeirah Lakes Towers: 222

• Motor City: 130

• Barsha Heights: 88

• Dubai Silicon Oasis: 41

Nearly 50% of transactions involved units sized 1,000–2,000 sq ft, while 40% were under 1,000 sq ft. Larger spaces (2,001–5,000 sq ft) made up 10%, and 2% were larger than 5,000 sq ft.

🏗️ New Supply on the Way

Dubai’s total office stock now stands at approximately 9.3 million sqm GLA. An additional 215,000 sqm is expected by end‑2025, with another 181,000 sqm due in 2026. Most of this will be A‑grade space in central business areas, helping balance out demand and temper price escalation.