Average office sales prices in Downtown Dubai climbed 29% year-on-year to Dh5,130 per square foot in 2025, according to the latest market review by Knight Frank, underscoring strong demand for well-located income-generating assets in one of the region’s most dynamic commercial real estate markets.
The rally has been accompanied by a sharp rise in high-value transactions. A total of 167 office deals worth more than Dh10 million were recorded last year, marking a 114% increase from 2024 and signalling deepening institutional and private investor confidence in Dubai’s long-term economic trajectory.
“Dubai’s office market has firmly established itself as one of the most dynamic and resilient in the region. The near-tripling in Dh10 million-plus transactions between 2023 and 2025 underscores the depth of capital targeting Dubai and reflects strong belief in the city’s economic and real estate fundamentals,” said Faisal Durrani, partner and head of Research, MENA at Knight Frank.
The surge in values reflects tightening availability of high-quality stock as businesses expand their regional presence and upgrade workplace environments to attract talent. Companies are increasingly willing to pay premiums for efficient floorplates in well-connected districts with strong lifestyle amenities and metro access.
Adam Wynne, partner and head of Commercial Agency, UAE at Knight Frank, said occupancy levels across prime office buildings remain close to full capacity. “Demand continues to outpace supply, which has driven both capital values and rents higher quarter-on-quarter and year-on-year — a trend that has persisted since 2020,” he noted.
The strength of the market is being driven largely by the banking, financial services and technology sectors, which together accounted for more than half of new office space requirements during the second half of 2025. Banking and finance represented 32.5% of demand, while technology firms accounted for 23.1%, reinforcing Dubai’s position as a regional hub for innovation and global capital flows.
This shift towards premium workspace is also widening the performance gap between modern Grade-A buildings and older secondary stock, with blue-chip occupiers increasingly favouring single-owned institutional-grade developments over strata-titled properties.
Despite the strong price momentum, a substantial pipeline of new supply is expected to reshape the market over the medium term. Around 24.2 million square feet of office space is scheduled for delivery between 2026 and 2030, largely concentrated in core business districts such as Business Bay, Meydan City, Jumeirah Lake Towers and the Dubai International Financial Centre (DIFC).
DIFC alone has a long-term pipeline of 7.7 million square feet planned through to 2040, reinforcing its status as the region’s leading financial hub and a magnet for international banks, asset managers and professional services firms.
Knight Frank said the upcoming supply is strategically aligned with occupier demand and is expected to moderate price growth over time, supporting a more balanced market environment rather than reversing the current upward trend.
Business Bay stands out as a key investment hotspot, with its entire under-construction pipeline designated as build-to-sell stock, offering investors direct exposure to one of Dubai’s fastest-growing commercial districts. Meanwhile, emerging locations such as Za’abeel are attracting attention from occupiers seeking central connectivity at relatively competitive rents, currently averaging around Dh550 per square foot.
Looking ahead, analysts expect the office market to remain tight in the short term until new developments begin entering the pipeline in meaningful volumes.
“Once the next wave of supply is delivered, we expect a greater divergence between Grade-A rents and secondary assets. Blue-chip occupiers remain focused on well-managed, single-owned buildings, especially within free zones,” Wynne said.
With strong demand from finance and technology firms, rising investor appetite and limited availability of prime stock, Dubai’s office sector is emerging as one of the most resilient segments of the emirate’s commercial real estate market. The trend mirrors broader momentum across commercial property prices, which have demonstrated sustained growth despite regional challenges.
The office market surge comes as Dubai’s property market shows resilience across multiple sectors, reinforcing the emirate’s role as a global business hub at a time of continued economic expansion.
