Dubai’s commercial real estate sector has delivered its strongest performance in over a decade, with total office sales doubling year-on-year to reach Dh3.1 billion, underscoring sustained business confidence and robust economic momentum across the emirate.
According to a market analysis by Cavendish Maxwell, 2025 witnessed a sharp acceleration in transactional activity, rising demand for Grade A office space, and continued rental growth driven by limited new supply.
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Transaction Volumes Surge 53%
Office transaction volumes climbed 53% year-on-year, with approximately 4,600 deals recorded marking one of the most active years on record for Dubai’s office segment.
This surge reflects:
- Business expansion across financial, technology, and professional services sectors
- Continued inflow of international companies establishing regional headquarters
- Strong investor appetite for income-generating commercial assets
Prices and Rents Climb on Tight Supply
The imbalance between demand and available premium stock has placed upward pressure on both capital values and rental rates.
Key highlights include:
- 26% increase in average price per square foot
- 23% rise in office rental rates
- High occupancy levels across prime business districts
- Limited delivery of new Grade A supply
Prime commercial hubs such as Dubai International Financial Centre (DIFC), Downtown Dubai, and Business Bay continue to experience particularly strong demand, with availability tightening significantly.
Strong Fundamentals Driving Growth
The performance of the office sector aligns with Dubai’s broader economic expansion. Ongoing government initiatives, business-friendly regulations, and the emirate’s positioning as a global hub for finance, technology, trade, and innovation have contributed to sustained corporate growth.
Flexible payment structures, competitive pricing relative to global gateway cities, and the appeal of long-term capital appreciation have further strengthened investor interest in commercial assets.
What This Means for Businesses and Investors
For corporates, the market signals the importance of early space planning amid tightening supply in premium locations.
For investors, the sector offers:
- Strong rental yield potential
- Capital appreciation prospects
- Long-term stability supported by economic fundamentals
With limited pipeline supply scheduled for delivery, market momentum is expected to continue into 2026, particularly within high-quality, well-located office developments.
