In the year 2025, there is a tremendous rise in prices in the Dubai office market. The main reason for this is the frequent shortage of Grade A office space (ie, best office facilities) and increasing demand for multinational companies and small companies (SMEs). Because of this, Dubai Office Prices here are also constantly going up in all types of office grades (A, B, C).
This situation has made the market completely in favor of landlords; that is, Landlords have more strength. Empty office rates are already low, and the supply of new office space is also limited, which has increased the demand even more. Overall, the Dubai office market is currently in favor of the landlords, and the trend of rising prices and sales prices can remain in the coming months.
- Increase in sales and fare rates:
Office sales prices have been recorded at 24.5% on an annual basis, while the rent has seen an increase of 24%. The main reason for this is – limited availability in the Grade A office and strong demand for persistent.
- Spillover effect:
Due to the frequent decrease of Grade A office space, demand in Grade B and C segments is also increasing, due in which prices are also increasing in those segments.
- Occupancy rates:
The office space has remained at a height of office space across the city, especially in the grade A office, where there is almost a complete filler situation. The reason for this is the continuous increase in demand and left behind the supply.
- New supply:
A new office of about 215,000 sqm is expected to enter the space market, but often, the actual completion projects are less than the estimates. Also, many people pre-book, which reduces the availability immediately.
- Market status:
Given the equation of this supply and demand, landlords will remain heavy in the market. They will get a strong position. Because of this, there is a possibility of a further increase in both sales and fares during 2025, especially due to a lack of supply.
Factors Driving the Surge in Dubai Office Prices
- Economic Development:
The increasing number of establishments of new businesses has increased the demand for office space, along with stable and continuous growth in the Dubai economy.
- Business registration:
According to a report by the Dubai International Chamber, the first quarter of 2025 has increase in the new registration of foreign companies by 39%, including 11 multinational companies and 42 small-party companies (SMEs).
- Infrastructure Development:
The development of strategic infrastructure and excellent connectivity has made Dubai a more attractive center for trade.
- Rumer environment:
Dubai’s progressive and business-friendly rule structure attracts international investment. It establishes the position of Dubai as a strong trading destination, even if there are political or economic challenges globally.
Tenant Adaptations in Response to Rising Dubai Office Prices
- Taking up less space and changing location: Some tenants are considering shortening the size of the office or going to another place to control their expenses.
- Increasing trend of flexible workspace: According to the changing market needs, many companies are now adopting flexible office spaces so that they can easily manage their operations.
- Pre-Commitment (Advance Booking): Tenants are already booking in advance to secure office space in the upcoming projects to ensure their office space amid limited availability.
Outlook for Dubai Office Prices in 2025
There is a very positive atmosphere in Dubai’s office sales market. Around 900 office transactions were completed in the first quarter of 2025, which is 23.7% more than the same period last year. This increase has not only happened in the ready office space, but also off-plan, i.e., such projects which are still or are going to be built. The special thing is that the outstanding part of the off-plan deals has increased to 18.9% of the total deals, compared to only 8.1% in the earlier quarter. This shows that buyers are expressing great confidence in future office space.
Due to a lack of balance between supply and demand, office prices in Dubai are expected to rise continuously throughout 2025. The landlord will have a stronghold as the new supply is low and the demand remains constant. For this reason, the dominance and impact of landlords in the market will remain intact.
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