Prime Office Rents Surge by 36.4% and 35% in Secondary Class
5.6% Increase in Office Property Price Index in Q3
2.5 Million Square Feet of Leasable Space Projected to Enter Market by End of 2025
The demand for office spaces in Dubai remains robust, fueled by sustained economic growth and ongoing business expansion. In the third quarter of 2025, the office property price index saw a quarterly increase of 5.6% and an annual spike of 27.5%, according to the latest report from “ValuStrat” research institute.
The report highlights that rental prices continued their upward trend, climbing by 4% in the third quarter after achieving record levels in the two preceding quarters. Overall, office rents have risen by 30.9% compared to the same period last year.
The Dubai International Financial Centre (DIFC) stands out as the most expensive business district in Dubai, registering the highest average rents for both small and large office spaces. It also showcased the best capital gains, underlining its status as a major investment and commercial hub attracting global firms and financial institutions keen on establishing a presence at the heart of the emirate’s economy.
The ValuStrat Property Index (VPI) for office assets reached a new record of 277.8 points during the third quarter, compared to a base of 100 set in Q1 2021, with the average valuation of offices in Dubai noted at AED 2,120 per square foot.
Key Areas
Among the main business centers, Downtown Dubai recorded the highest average office price at AED 4,650 per square foot, followed by DIFC at AED 4,050 per square foot. In contrast, Barsha Heights listed the lowest average price at AED 1,383 per square foot.
All five key business areas in Dubai tracked by the VPI experienced double-digit annual capital gains, with DIFC leading at 37.3%, followed by Jumeirah Lake Towers at 26.8%, Barsha Heights at 24.4%, Business Bay at 22.6%, and Downtown Dubai at 20.8%.
Notably, shell-and-core offices recorded a higher value increase compared to fitted offices, with prime class offices seeing a yearly rise of 36.4% and secondary class offices increasing by 35%.
Office Inventory
As of Q3 2025, the total office stock in Dubai is estimated at 103 million square feet. Developers project that an additional 2.5 million square feet of leasable space will be completed by the end of 2025.
The third quarter witnessed 708 office sales transactions, marking a year-on-year increase of 12.4% but a quarterly decline of 10.9%. The average transaction price was AED 1,755 per square foot, reflecting an 18% annual increase.
Business Bay maintained its status as the most active area for office sales, accounting for 39.5% of total transactions during this quarter, followed by Jumeirah Lake Towers with 36.4%, and Barsha Heights at 8.2%.
The average size of sold office units was 1,190 square feet in Business Bay, 1,298 square feet in Jumeirah Lake Towers, and 1,551 square feet in Barsha Heights. During the third quarter, a total of 966,317 square feet of leasable space was transacted, amounting to an investment value exceeding AED 1.9 billion.
Rental Performance
Office rental prices rose by 4% quarterly, following record increases in the previous two quarters. This has led to an annual average rent of AED 198 per square foot, which is 30.9% higher than last year.
The Dubai International Financial Centre recorded the highest average rent for small office spaces (800 – 1,000 square feet) at AED 401 per square foot, followed by Barsha Heights at AED 208 per square foot, and Business Bay at AED 203 per square foot, while Jumeirah Lake Towers offered the most affordable rates at AED 163 per square foot, based on available listings.
For larger units ranging from 931 to 2,000 square feet, available listings indicated that average rental prices were AED 639 per square foot in DIFC, AED 231 per square foot in Barsha Heights, AED 215 per square foot in Business Bay, and AED 207 per square foot in Jumeirah Lake Towers.