Dubai’s office market continues to show resilience, with prime districts maintaining pricing strength despite more measured activity levels. Average office prices in Downtown Dubai reached AED 5,130 per square foot in 2025, up 29% from AED 3,986 a year earlier, according to Knight Frank.
Original article: Dubai offices cross Dh5,130 per square foot as big-ticket deals double in prime districts by Gulf News.
High-value transactions have also increased, with 167 deals above AED 10 million recorded during the year – a 114% rise on 2024. This reflects continued demand for income-generating assets in established business districts, particularly among institutional and long-term investors.
“Dubai’s office market has firmly established itself as one of the most dynamic and resilient in the region, with investors increasingly focused on well-located, income-generating assets. The near-tripling in Dh10 million+ transactions between 2023 and 2025 underscores the depth of capital targeting Dubai and reflects a strong belief in the city’s long-term economic and real estate fundamentals.” – Faisal Durrani, Partner and Head of Research MENA, Knight Frank.
Capital Is Becoming More Selective and Concentrated
Investor activity is increasingly focused on prime, income-producing assets. The rise in large-ticket transactions highlights a more deliberate and selective approach to capital allocation, with buyers prioritising stability, tenant profile, and long-term income potential.
This points to a maturing investment environment. Rather than broad-based demand, capital is concentrating in well-located, high-performing assets within core districts, reinforcing a clearer distinction between prime and secondary stock.
Quality Continues to Drive Pricing and Occupier Demand
The gap between prime and secondary office assets is becoming more pronounced. Grade A buildings with efficient layouts, strong infrastructure, and direct metro access are commanding premiums in both price and occupancy.
Occupier demand remains led by banking, finance, and technology firms, which accounted for a significant share of leasing activity in 2025. These sectors are actively targeting spaces that support talent retention, client engagement, and modern workplace strategies.
“Assets are operating at or near full occupancy with very limited vacancy and, as demand continues to outpace supply, both capital values and rents have naturally increased quarter-on-quarter and year-on-year – a trend that has persisted since 2020,” – Adam Wynne, Partner and Head of Commercial Agency UAE, Knight Frank.
Supply Pipeline Builds, but Market Conditions Remain Tight
Approximately 24.2 million square feet of office space is scheduled for delivery between 2026 and 2030, with new supply concentrated across Business Bay, DIFC, Meydan, and Jumeirah Lake Towers.
While this pipeline reflects confidence in long-term demand, near-term market conditions remain tight. Vacancy levels are low, and existing supply continues to be absorbed, particularly in single-owned, well-managed buildings in prime locations.
Looking ahead, any significant shift in pricing dynamics is likely to be linked to the timing of new supply delivery, rather than a change in underlying demand trends.
A More Structured Market Is Taking Shape
Dubai’s office sector is becoming increasingly performance-driven, with pricing, demand, and investment activity reinforcing a clear hierarchy between prime and secondary assets.
While overall activity has become more measured in the current environment, demand remains firmly concentrated around high-quality assets that meet global standards in design, location, and management.
As new supply comes online, it is expected to enhance market depth rather than disrupt it. The continued focus on quality and income generation points to a market that is reinforcing its long-term fundamentals, even as near-term activity becomes more selective.
