Q1 2025 Office Market Snapshot
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Total sales: AED 2.8 billion (~$762 million) across 933 transactions
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This represents an 83% increase in sales value and a 24% rise in transaction volume vs Q1 2024
Off‑Plan Boom
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Off‑plan sales soared 741%, hitting AED 800 million ($218 m), up from AED 100 million ($27 m) in Q1 2024
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Off‑plan deals comprised 18% of total sales, nearly doubling from 8% in Q1 2024
Market Drivers & Trends
Vidhi Shah (Director, Commercial Valuation, Cavendish Maxwell) attributes the surge to:
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High buyer confidence in upcoming developments
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Competitive launch prices and flexible payment options
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Expectations of capital appreciation
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Rising rents encouraging tenants to buy offices.
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Also noted: nearly 40% rise in foreign company registrations, boosting demand
Price & Rent Growth
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Average sales price: AED 1,650 / sq ft — up 24.5% YoY and 6.5% QoQ
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Average rent: AED 160 / sq ft — up 24% YoY and 6.7% QoQ
Top Performing Districts
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Downtown Dubai: ~40% price growth
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DIFC: 39% growth
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Barsha Heights: 38% growth
Transaction Volume by Area
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Business Bay – 316 deals
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Jumeirah Lakes Towers (JLT) – 222
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Motor City – 130
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Barsha Heights – 88
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Dubai Silicon Oasis – 41
Unit Sizes
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1,000–2,000 sq ft: 48% of transactions
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< 1,000 sq ft: 40%
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> 5,000 sq ft: ~2%
Supply Outlook
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Existing stock: ~9.3 million sq m GLA as of Q1 2025
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Pipeline: +215,000 sq m due by year-end and +181,000 sq m in 2026, mostly Grade A in core business zones
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Shah added that this boost in supply “may help ease the current supply‑demand imbalance, bringing some relief to tenants and easing price pressure”
Summary at a glance:
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AED 2.8 bn (~$762 m) in office sales – up 83% YoY.
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Off‑plan sales skyrocketed 741%, now 18% of total.
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Prices & rents climbing ~24% YoY (avg. prices: AED 1,650/sq ft; rents: AED 160/sq ft).
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Downtown, DIFC & Barsha Heights led growth.
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1,000–2,000 sq ft units dominate.
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Supply additions expected through 2026, which may ease tight conditions.
