Key Insights from the H1 2025 Cavendish Maxwell Dubai Office Market Performance Report
- Stephen James Mitchell MBA
- Sep 30
- 8 min read
Updated: Oct 14
The Cavendish Maxwell Dubai Office Market Performance report H1 2025 paints a picture of resilience and accelerated growth across Dubai’s commercial real estate sector. With foreign direct investment (FDI) surging, office transactions reaching record highs, and prices showing double-digit increases, Dubai continues to reinforce its standing as a global business hub.
For investors, the report provides not just a snapshot of performance but also a forward-looking perspective on supply, pricing, and demand dynamics. This analysis unpacks the findings, explores underlying drivers, and examines what lies ahead for Dubai’s office property market.
Dubai’s Investment Landscape in H1 2025
Record FDI Inflows
According to the Cavendish Maxwell report, Dubai attracted 526 greenfield FDI projects, representing 86% of the UAE’s total, with inflows of USD 3.03 billion. This underlines Dubai’s central role in regional investment activity.
Key drivers of this growth include:
Pro-business policies and regulatory transparency.
Strategic geographic positioning as a global trade hub.
Ongoing diversification into finance, technology, and logistics.
DIFC Expansion
The Dubai International Financial Centre (DIFC) remains a cornerstone of this momentum. In the first half of 2025, DIFC registered 1,081 new companies, a 32% year-on-year increase. The workforce also expanded to nearly 48,000 professionals, reinforcing DIFC’s role as a magnet for international firms seeking regional headquarters.
This influx of businesses directly supports office demand, particularly in premium districts where Grade A stock is scarce.
As DIFC attracts more global firms, demand for premium office assets continues to climb.
Let’s discuss where the strongest opportunities are emerging across Dubai’s commercial real estate landscape.
Sales Transactions Surge in H1 2025
The Cavendish Maxwell Dubai Office Market Performance report highlights a striking rise in activity:
1,900 transactions completed (+21.6% YoY).
AED 5.4 billion total sales value, marking an 83.9% increase YoY.
This growth reflects both investor confidence and occupier demand. Buyers are increasingly securing ownership amid escalating rents, while investors are capitalizing on limited supply and appreciating asset values.
Ready vs Off-Plan Sales
Ready offices: Still dominate at 84.7% of transactions but showed a slight dip as occupiers turned to future-ready stock.
Off-plan offices: Rose to 15.3%, reflecting demand for modern, flexible spaces. Transaction volumes in this segment grew 179.8% YoY, albeit concentrated in premium projects.
Interestingly, the report notes a 617% increase in transaction values for off-plan deals compared to 2024, indicating a strong appetite for luxury and future-oriented office developments.
Top Performing Locations – As Highlighted in the Cavendish Maxwell Dubai Office Market Performance Report
The sales momentum wasn’t evenly spread—certain submarkets saw far higher activity:
Business Bay: 672 transactions
Jumeirah Lakes Towers (JLT): 534 transactions
Motor City: 216 transactions
Barsha Heights (Tecom): 160 transactions
Dubai Silicon Oasis: 77 transactions
Business Bay, with its centrality and growing reputation for high-grade commercial projects, continued to lead in both volume and investor attention.
Office Supply: Current and Upcoming Deliveries
The report underscores a measured supply pipeline:
34,000 sqm delivered in H1 2025, lifting total GLA to 9.32 million sqm.
110,000 sqm scheduled by end-2025.
340,000 sqm projected for 2026.
While supply is expanding, variations in completion timelines mean short-term availability remains tight. This has kept occupancy rates elevated, reinforcing upward price and rental pressures.
Developers are increasingly responding with Grade A launches, tailored to occupiers seeking sustainability, flexible layouts, and premium amenities.
Case in Point: Lumena Alta – A Landmark New Launch
A standout example of this new wave of premium office supply is Lumena Alta by Omniyat, recently announced in Business Bay. Set to become a landmark commercial tower, Lumena Alta builds on the success of its predecessor, Lumena, which achieved a record-breaking AED 3.4 billion in sales—the highest ever for a commercial project in Business Bay.
Rising taller and more architecturally prominent, Lumena Alta blends Grade A office space with ultra-luxury hospitality, reflecting Dubai’s continued evolution toward experience-led workplaces. Located at the gateway to Business Bay, with direct connectivity to Downtown Dubai and Sheikh Zayed Road, the project captures the growing demand from global corporates and UHNWIs seeking office ownership that unites functionality, prestige, and lifestyle.
Projects like Lumena Alta illustrate how Dubai’s developers are reshaping the city’s commercial landscape—delivering spaces that go beyond traditional offices to become status-defining business addresses in one of the world’s most competitive real estate markets.
Learn more about Lumena Alta’s offerings and explore available office spaces on our office listings page.
Price and Rental Trends
Sales Prices
Increased 22.2% YoY.
Average ticket price for ready offices rose from AED 1.9 million to AED 2.7 million.
The sustained rise highlights investor conviction that Dubai offices are an appreciating asset class, even amid global economic uncertainties.
Rental Rates
Surged 26.4% YoY.
Prime districts such as DIFC (+34.9%) and Downtown Dubai (+33.5%) saw the highest growth.
In contrast, older districts like Bur Dubai (+3.8%) and Deira (+2.6%) posted only modest increases, as tenant demand shifted toward modern, centrally located Grade A stock.
Short-Term Outlook: 2025 Dynamics
The near-term picture is clear:
Sales prices and rents will likely keep rising due to constrained supply.
Occupancy rates to remain high until significant new deliveries arrive in 2026.
Tenant preference shifting toward ownership, particularly in premium hubs, as a hedge against escalating rental costs.
For investors, this suggests a window of opportunity: assets acquired now may enjoy further appreciation in the short run before supply-side pressures ease from 2026 onwards.
Rental Dynamics Across Submarkets
One of the strongest takeaways from the Cavendish Maxwell Dubai Office Market Performance report H1 2025 is the divergence in rental growth across submarkets.
High-growth districts: DIFC and Downtown Dubai led the market, with 34.9% and 33.5% rental increases, respectively. Demand here is driven by multinational corporations and financial institutions seeking modern, connected office environments.
Moderate-growth districts: Locations such as Business Bay and JLT experienced healthy rental increases, supported by expanding business activity and strong investor appetite.
Low-growth districts: Mature markets like Bur Dubai, Deira, and Dubai Healthcare City saw limited rental growth under 4%. These areas face challenges tied to older infrastructure and limited capacity to compete with new Grade A developments.
This uneven growth trajectory indicates a market in transition—older stock is gradually losing ground to new, high-quality developments that better meet modern occupier requirements.
Long-Term Supply Outlook (2026–2028)
The supply picture is perhaps the most important variable for investors assessing future performance. While just over 110,000 sqm is scheduled for delivery in 2025, the bulk of new stock is projected between 2026 and 2028, totaling over 340,000 sqm in 2026 alone.
Key implications for investors:
Short-term scarcity favors landlords and sellers – elevated occupancy and rising rents are likely to persist through late 2025.
2026 onwards brings balance – as more Grade A stock enters the pipeline, rental growth could moderate, and buyers will enjoy greater choice.
Differentiation matters – not all supply will compete equally; sustainability features, flexible layouts, and integrated amenities will distinguish high-performing assets from lagging stock.
With new Grade A stock set to enter the market, timing and asset selection will be key to maximizing long-term value.
Let’s talk about how you can align your investment strategy with Dubai’s evolving office pipeline.
Why Prices Remain on an Upward Trend
The report indicates that office sales prices rose 22.2% YoY in H1 2025, and momentum is unlikely to fade soon.
The drivers are structural:
Investor demand: Regional family offices, institutional funds, and high-net-worth individuals are diversifying into Dubai’s commercial real estate.
Occupier demand: Corporates are prioritizing ownership to manage rental risk.
Limited prime supply: Delays in completions keep Grade A availability tight.
Capital inflows: FDI is directly boosting office demand, especially in DIFC and nearby submarkets.
These trends underscore why Dubai’s office market has outperformed many global peers, where economic uncertainty has slowed commercial property activity.
Comparative View: Dubai vs Global Office Markets
Globally, the office sector has faced headwinds—particularly in Western markets where hybrid working models and slowing economies have softened demand. In contrast:
Dubai has seen a counter-trend boom, with occupiers expanding footprints rather than downsizing.
Rising rents contrast with declines elsewhere, particularly in North America and parts of Europe where vacancy rates remain elevated.
Investor sentiment remains robust, underpinned by Dubai’s political stability, tax advantages, and international connectivity.
This relative outperformance reinforces Dubai’s role as a regional safe haven for capital, particularly from Asia, the Middle East, and Europe.
Investor Takeaways from the Cavendish Maxwell Report
For investors, the report offers several strategic insights:
Timing matters: Acquiring in 2025 may capture additional upside before supply growth eases upward pressure from 2026 onward.
Location is key: Prime districts like DIFC, Business Bay, and Downtown Dubai are showing the strongest capital appreciation and rental growth.
Ownership hedges inflation: With rental growth exceeding 25% year-on-year, owning offices provides insulation against future leasing cost escalation.
Diversification within the market: Ready offices offer immediate income streams, while off-plan units—such as in Lumena Alta—provide exposure to future appreciation in premium stock.
2025 Real Estate Market Outlook: The Bigger Picture
The UAE’s commercial property sector overall has displayed remarkable resilience in the first half of 2025.
According to Cavendish Maxwell’s analysis:
Institutional confidence remains strong, especially in ESG-aligned assets.
Logistics and prime offices are emerging as the most sought-after segments.
Capital inflows are diversifying, with significant contributions from Europe and Asia.
Looking ahead, the upcoming wave of supply in 2026–2028 will help rebalance the market, offering investors and occupiers greater flexibility. However, until then, rents and prices are likely to remain under upward pressure.
Download Full Report:
Source: Cavendish Maxwell, Dubai Office Market Performance H1 2025, August 2025. Original publication available here.
Frequently Asked Questions (FAQs)
1. What were the key highlights of the Cavendish Maxwell Dubai Office Market Performance report H1 2025?
The report highlighted 1,900 office transactions worth AED 5.4 billion, a 22.2% rise in sales prices, and a 26.4% increase in rental rates. It also noted significant FDI inflows and expansion within DIFC.
2. Which areas recorded the most office sales in H1 2025?
Business Bay and Jumeirah Lakes Towers led activity, with 672 and 534 transactions respectively. Motor City, Barsha Heights, and Dubai Silicon Oasis also ranked among the top five.
3. Why are rental rates rising so quickly in Dubai?
Strong occupier demand, limited short-term supply, and high pre-leasing of upcoming stock have driven a 26.4% annual increase in rental rates. Premium districts like DIFC and Downtown Dubai saw growth exceeding 30%.
4. How does Dubai compare with global office markets in 2025?
Unlike North America and Europe, where hybrid work has softened demand, Dubai’s office market is thriving due to strong FDI inflows, corporate expansions, and rising occupier preference for ownership.
5. What’s the outlook for the Dubai office market in the second half of 2025?
Sales and rental growth are expected to continue in the short term, with occupancy rates remaining high. However, supply entering in late 2025 and accelerating from 2026 will likely ease pressures gradually.
6. Should investors consider ready or off-plan offices?
Both segments hold value. Ready offices provide immediate returns and hedge against rental inflation. Off-plan offices, such as Lumena Alta, offer exposure to future Grade A stock and long-term appreciation potential.
Conclusion: Dubai’s Office Market at an Inflection Point
The Cavendish Maxwell Dubai Office Market Performance report H1 2025 underscores Dubai’s position as one of the world’s most dynamic office markets. Record-breaking transaction volumes, sustained rental growth, and high investor confidence point to a robust cycle still in motion.
In the short term, limited supply will continue driving upward pressure on rents and sales prices. Over the medium term, however, the entry of new stock from 2026 onwards should rebalance conditions, offering both occupiers and investors a broader range of opportunities.
For investors, the message is clear: Dubai remains a market of resilience, depth, and momentum. Whether through ready assets generating immediate returns or off-plan projects positioned for future growth, the city offers a compelling investment case rooted in economic strength and global connectivity.
Let’s Build Your Commercial Investment Strategy
I’m Stephen James Mitchell, Managing Director of Global Investments and a licensed commercial real estate advisor.
If you’re exploring how to deploy capital into Dubai’s fast-moving commercial sector, I’m here to support you with data-driven insights and access to strategic opportunities.
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