Latest news with #VidhiShah
Arabian Business
3 days ago
- Business
- Arabian Business
Dubai office sales hit $762m in Q1 as off-plan transactions surge 741%
Dubai's office real estate market hit record highs in Q1 2025, with investors spending AED2.8bn ($762m) across 933 transactions, according to the latest market intelligence from Cavendish Maxwell. The performance marks an 83 per cent year-on-year increase in sales value and a 24 per cent rise in transaction volume, cementing the city's position as one of the world's most dynamic business destinations. While ready office units continue to dominate the sales market, off-plan transaction values rose nearly eight-fold, up 741 per cent to AED800m ($218m), compared to AED100m ($27m) in the same quarter last year. Dubai office market Off-plan transactions accounted for 18 per cent of total sales, up from just 8 per cent in Q1 2024. Vidhi Shah, Director, Head of Commercial Valuation at Cavendish Maxwell, said: 'These record-breaking figures speak for themselves. Dubai continues to enhance its position as a global business hub and a magnet for businesses large and small. £The momentum is real: Q1 2025 saw nearly 40 per cent more foreign company registrations – including multinationals and SMEs – compared to the same time last year, reflecting ever-growing investor confidence and creating unprecedented demand for office space. 'The surge in off-plan deals can be attributed to buyer trust in upcoming developments, competitive launch prices, flexible payment plans and expectations of long-term capital appreciation. With limited existing supply and rising rental costs, a growing number of tenants are opting to buy as a strategic, long-term cost-saving measure. 'Ready offices still account for the majority of sales, but it is clear that off-plan properties are very much in demand, and we expect this trend to continue throughout 2025 and beyond.' Office sales prices increased by 24.5 per cent year-on-year and by 6.5 per cent quarter-on-quarter, with the average price reaching AED1,650 ($449) per square foot by March 2025. Rental rates followed a similar trend, rising 24 per cent annually and 6.7 per cent compared to Q4 2024, with average office rents climbing to AED160 ($43.5) per square foot. Downtown Dubai led the market in annual growth with prices rising by almost 40 per cent, followed closely by DIFC (39 per cent) and Barsha Heights (38 per cent). Limited availability of Grade A space has pushed prices higher across lower-tier office stock, with demand spilling over into B and C grade inventory. Business Bay topped the chart for transaction volume in Q1 2025, recording 316 deals, followed by Jumeirah Lakes Towers (222), Motor City (130), Barsha Heights (88), and Dubai Silicon Oasis (41). In terms of size, offices between 1,000 and 2,000sq ft were the most in demand, accounting for 48 per cent of all sales. Smaller units under 1,000sq ft made up 40 per cent, while only 2 per cent of transactions involved spaces larger than 5,000sq ft. Dubai's total office inventory reached 9.3 million square metres of gross leasable area (GLA) as of Q1 2025. An additional 215,000 sq m is expected to enter the market before the end of the year, with another 181,000 sq m scheduled for delivery in 2026. Much of the upcoming stock is located in core business districts and classified as Grade A, potentially easing supply constraints over the next two years. Vidhi Shah added: 'Much of the new supply is concentrated in core business districts, with a significant proportion in the A-grade category. 'With a strong development pipeline over the next three years, we expect the current supply-demand imbalance to narrow, bringing some relief to tenants and easing upward pressure on prices.'
Economy ME
3 days ago
- Business
- Economy ME
Dubai's office market sets new records with $762.4 million sales in Q1 2025
Dubai's office real estate market has set new records for sales values and volumes, with investors spending AED2.8 billion ($762.4 million) across 933 transactions in Q1 2025, according to new insight from Cavendish Maxwell . Office sales values from January to March this year were 83 percent higher compared to the same period in 2024, while transaction volumes were up almost 24 percent. 'These record-breaking figures speak for themselves. Dubai continues to enhance its position as a global business hub and a magnet for businesses large and small. The momentum is real: Q1 2025 saw nearly 40 percent more foreign company registrations – including multinationals and SMEs – compared to the same time last year, reflecting ever-growing investor confidence and creating unprecedented demand for office space,' said Vidhi Shah, director, head of commercial valuation at Cavendish Maxwell. Off-plan transaction values surge 741 percent The report also revealed that while ready offices still dominate the Dubai sales market, off-plan transaction values rose a staggering 741 percent – nearly 8-fold – to reach a new high of AED800 million in Q1, against AED100 million a year ago. Meanwhile, ready office transactions increased by nearly 40 percent year-on-year. Of the 900+ total transactions, 18 percent were for off-plan premises, up from 8 percent in Q1 2024. 'The surge in off-plan deals can be attributed to buyer trust in upcoming developments, competitive launch prices, flexible payment plans and expectations of long-term capital appreciation. With limited existing supply and rising rental costs, a growing number of tenants are opting to buy as a strategic, long-term cost-saving measure. Ready offices still account for the majority of sales, but it is clear that off-plan properties are very much in demand, and we expect this trend to continue throughout 2025 and beyond,' added Shah. Office prices jump 24.5 percent Sales prices across Dubai's office real estate market continue to rise. Q1 2025 saw a jump of 24.5 percent year-on-year and an increase of 6.5 percent quarter-on-quarter. As of March, average sales prices stood at AED1,650 per square foot, compared to AED1,325 psf in March last year. In addition, rental rates increased by similar amounts: 24 percent year-on-year and 6.7 percent compared to Q4 2024, with average office rates reaching AED160 psf. Hikes were also seen across all quality tiers of offices, with a limited supply of A-grade space driving increases in B and C space. Downtown Dubai saw the biggest year-on-year growth, up almost 40 percent. Next were DIFC at 39 percent and Barsha Heights at 38 percent. Top areas for office sales Business Bay commanded the number one spot for office sales in Dubai's real estate market (ready and off-plan combined) in Q1, with 316 transactions. In second place was Jumeirah Lakes Towers (222), followed by Motor City (130), Barsha Heights (88) and Dubai Silicon Oasis (41). Almost half of sales transactions in Q1 were for offices between 1,000 and 2,000 sq ft in size. Premises measuring less than 1,000 sq ft accounted for 40 percent of sales, while spaces from 2,001-5,000 sq ft accounted for 10 percent. The remaining 2 percent were for areas covering over 5,000 sq ft. Read| Dubai real estate: Property prices surge 24.7 percent in May 2025 Upcoming 215,000 sq m of supply As of Q1 this year, Dubai's total office inventory reached nearly 9.3 million square meters of gross leasable area (GLA). Another 215,000 sq m is expected to come to the market between now and the end of the year, followed by a further 181,000 sq m in 2026. 'Much of the new supply is concentrated in core business districts, with a significant proportion in the A-grade category. With a strong development pipeline over the next three years, we expect the current supply-demand imbalance to narrow, bringing some relief to tenants and easing upward pressure on prices,' added Shah.
Khaleej Times
3 days ago
- Business
- Khaleej Times
Dubai's office market sets new records in first quarter
Dubai's office real estate market has set new records for sales values and volumes, with investors spending Dh2.8 billion across 933 transactions in Q1 2025, data showed. According to new insight from leading real estate advisory and property consultant, Cavendish Maxwell, office sales values from January to March this year were 83 per cent higher compared to the same period in 2024, while transaction volumes were up almost 24 per cent. While ready offices still dominate the sales market, off-plan transaction values rose a staggering 741 per cent - nearly eightfold - to reach a new high of Dh800 million in Q1, against Dh100 million a year ago. Ready office transactions increased by nearly 40 per cent year-on-year. Of the 900+ total transactions, 18 per cent were for off-plan premises, up from 8 per cent in Q1 2024, Cavendish Maxwell's latest Dubai Office Market Performance report showed. Vidhi Shah, director, head of commercial valuation at Cavendish Maxwell, said: 'These record-breaking figures speak for themselves. Dubai continues to enhance its position as a global business hub and a magnet for businesses large and small. The momentum is real: Q1 2025 saw nearly 40 per cent more foreign company registrations - including multinationals and SMEs - compared to the same time last year, reflecting ever-growing investor confidence and creating unprecedented demand for office space.' Price trends Sales prices continue to rise. Q1 2025 saw a jump of almost a quarter (24.5 per cent) year-on-year and increase of 6.5 per cent quarter-on-quarter. As of March, average sales prices stood at Dh1,650 per square foot, compared to Dh1,325 psf in March last year. Rental rates increased 24 per cent year-on-year and 6.7 per cent compared to Q4 2024, with average office rates reaching Dh160 psf. Hikes were seen across all quality tiers of offices, with limited supply of A-grade space driving increases in B and C space. Downtown Dubai saw the biggest year-on-year growth, up almost 40 per cent. Next were DIFC (39 per cent) and Barsha Heights (38 per cent). Top areas for transaction volume Business Bay commanded the number one spot for office sales (ready and off-plan combined) in Q1, with 316 transactions. In second place was Jumeirah Lakes Towers (222), followed by Motor City (130), Barsha Heights (88) and Dubai Silicon Oasis (41). Almost half (48 per cent) of sales transactions in Q1 were for offices between 1,000 and 2,000 sq ft in size. Premises measuring less than 1,000 sq ft accounted for 40 per cent of sales, while spaces from 2,001-5,000 sq ft accounted for 10 per cent. The remaining 2 per cent were for areas covering over 5,000 sq ft. Existing and upcoming supply As of Q1 this year, Dubai's total office inventory reached nearly 9.3 million square metres of gross leasable area (GLA). Another 215,000 sq m is expected to come to the market between now and the end of the year, followed by a further 181,000 sq m in 2026. 'The surge in off-plan deals can be attributed to buyer trust in upcoming developments, competitive launch prices, flexible payment plans and expectations of long-term capital appreciation. With limited existing supply and rising rental costs, a growing number of tenants are opting to buy as a strategic, long-term cost-saving measure. Ready offices still account for the majority of sales, but it is clear that off-plan properties are very much in demand, and we expect this trend to continue throughout 2025 and beyond. Much of the new supply is concentrated in core business districts, with a significant proportion in the A-grade category. With a strong development pipeline over the next three years, we expect the current supply-demand imbalance to narrow, bringing some relief to tenants and easing upward pressure on prices,' Shah said.
Zawya
3 days ago
- Business
- Zawya
Dubai's office market sets new records, with AED2.8bln worth of sales across 933 transactions
Off-plan transaction values surge 741% as rising rents prompt both investors and tenants to buy Business Bay and Jumeirah Lakes Towers top areas for sales Dubai – Dubai's office real estate market has set new records for sales values and volumes, with investors spending AED2.8 billion across 933 transactions in Q1 2025, according to new insight from leading real estate advisory and property consultant, Cavendish Maxwell. Office sales values from January to March this year were 83% higher compared to the same period in 2024, while transaction volumes were up almost 24%, the Dubai-based company said. Cavendish Maxwell's latest Dubai Office Market Performance report also shows that while ready offices still dominate the sales market, off-plan transaction values rose a staggering 741% - nearly 8-fold - to reach a new high of AED800 million in Q1, against AED100 million a year ago. Ready office transactions increased by nearly 40% year-on-year. Of the 900+ total transactions, 18% were for off-plan premises, up from 8% in Q1 2024. Vidhi Shah, Director, Head of Commercial Valuation at Cavendish Maxwell, said: 'These record-breaking figures speak for themselves. Dubai continues to enhance its position as a global business hub and a magnet for businesses large and small. The momentum is real: Q1 2025 saw nearly 40% more foreign company registrations - including multinationals and SMEs - compared to the same time last year, reflecting ever-growing investor confidence and creating unprecedented demand for office space. 'The surge in off-plan deals can be attributed to buyer trust in upcoming developments, competitive launch prices, flexible payment plans and expectations of long-term capital appreciation. With limited existing supply and rising rental costs, a growing number of tenants are opting to buy as a strategic, long-term cost-saving measure. Ready offices still account for the majority of sales, but it is clear that off-plan properties are very much in demand, and we expect this trend to continue throughout 2025 and beyond.' Price trends Sales prices continue to rise: Q1 2025 saw a jump of almost a quarter (24.5%) year-on-year and increase of 6.5% quarter-on-quarter. As of March, average sales prices stood at AED1,650 per square foot, compared to AED1,325 psf in March last year. Rental rates increased by similar amounts: 24% year-on-year and 6.7% compared to Q4 2024, with average office rates reaching AED160 psf. Hikes were seen across all quality tiers of offices, with limited supply of A-grade space driving increases in B and C space. Downtown Dubai saw the biggest year-on-year growth, up almost 40%. Next were DIFC (39%) and Barsha Heights (38%). Top areas for transaction volume Business Bay commanded the number one spot for office sales (ready and off-plan combined) in Q1, with 316 transactions. In second place was Jumeirah Lakes Towers (222), followed by Motor City (130), Barsha Heights (88) and Dubai Silicon Oasis (41). Size matters Almost half (48%) of sales transactions in Q1 were for offices between 1,000 and 2,000 sq ft in size. Premises measuring less than 1,000 sq ft accounted for 40% of sales, while spaces from 2,001-5,000 sq ft accounted for 10%. The remaining 2% were for areas covering over 5,000 sq ft. Existing and upcoming supply As of Q1 this year, Dubai's total office inventory reached nearly 9.3 million square metres of gross leasable area (GLA). Another 215,000 sq m is expected to come to the market between now and the end of the year, followed by a further 181,000 sq m in 2026. Vidhi Shah added: 'Much of the new supply is concentrated in core business districts, with a significant proportion in the A-grade category. With a strong development pipeline over the next three years, we expect the current supply-demand imbalance to narrow, bringing some relief to tenants and easing upward pressure on prices.' Download the full Cavendish Maxwell Dubai Office Market Performance report here. For media enquiries, please contact: Rebecca Rees at rebecca@ A bout Cavendish Maxwell Cavendish Maxwell is one of the Middle East's leading real estate advisory groups and property consultants, with offices in Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Kuwait City, Muscat and Riyadh. The company is a member of the Royal Institution of Chartered Surveyors (RICS) and offers a full range of property-related services, including valuation, strategic advisory, research, project and building consultancy and investment and commercial agency expertise. With a team of experienced professionals and a commitment to delivering exceptional service, Cavendish Maxwell has established itself as a trusted advisor in the regional real estate market.
Trade Arabia
24-04-2025
- Business
- Trade Arabia
Dubai to deliver 415,000 sq m new office space by 2026-end
Dubai is set to deliver 415,000 sq m of new office space by the end of 2026, with the majority of new inventory in the A-grade category, according to new research from leading real estate advisory and property consultant, Cavendish Maxwell. Around 185,000 sqm of new space is due to come to market this year, with another 230,000 sqm in 2026, as demand for quality offices in Dubai continues to rise, it stated. By the end of next year, Dubai's total office space inventory will reach almost 9.7 sqm, compared to 6.26 sqm today, said the expert in its latest Dubai Office Market Report. 2024 saw record transaction volumes and values in recent years, with 3,150 sales valued at AED6.8 billion ($1.85 billion), a 36% rise in values and a 7.1% in increase in transactions, it added. Business Bay led the field for office sales, accounting for over 46% of transactions. Vidhi Shah, a Partner and Head of Commercial Valuation, Cavendish Maxwell, said: "Dubai's office market continues to perform strongly, supported by sustained corporate expansion and increased levels of foreign investment." "The city's stable macroeconomic environment, coupled with pro-business legislation, continues to attract both multinational occupiers and a growing base of start-ups and SMEs. This has translated into heightened competition for well-located, prime office space," she added. According to Shah, the market recorded significant growth in both sales and rental values over the past year. "Looking ahead, as Dubai further enhances its infrastructure, expands free zone offerings, and rolls out additional business-friendly reforms, demand is expected to remain resilient. However, with a substantial volume of new supply due for delivery over the next 18–24 months, it will be important to track how this impacts vacancy levels, absorption rates, and overall market sentiment," she added. Cavendish Maxwell said office values and transaction volumes reached their highest peak in 2024, marking four consecutive years of growth since the 2020 pandemic. Sales values have surged five-fold, from AED1 billion in 2020 to AED6.8 billion in 2024, primarily driven by increased demand from both local and international buyers, it stated. Ready offices continue to dominate sales activity, accounting for nearly 92% of transactions – down slightly from 2023 owing to a rise in off-plan sales. Increased demand for off-plan offices is fuelled by growing investor confidence, demand for new accommodation and attractive payment plans. Businesses are also securing office space for the long term by buying off-plan to avoid the risk of future rent hikes, it added. According to Cavendish Maxwell, there were 2,900 ready office sales and 250 off-plan transactions in 2024 – a year-on-year rise of 5% and 37% respectively. Average sales and rental prices up almost 25% Office sales and rental prices rose nearly a quarter last year, reflecting sustained demand for ready offices, business expansion and new companies being established. Sales prices reached approximately AED1,550 per square foot, while rental rates hit approximately AED145 per sq ft. The real estate expert said the surge in rental prices was mainly driven by high occupancy levels, which favour landlords and can be a challenge for tenants in securing prime office space. As demand for prime space continues to rise, landlords are likely to refurbish existing stock to command higher rentals, it added. Business Bay topped the ready office sales chart in 2024, with 1,343 sales representing more than 46% of all transactions, followed by Jumeirah Lakes Towers (920 sales), Dubai Silicon Oasis (200), Barsha Heights (148) and Motor City (68). In the off-plan market, Jumeirah Village Circle emerged as the most popular area, with 91 transactions, followed by Dubai Maritime City (65), Culture Village (47), Dubai Silicon Oasis (20) and Jumeirah Lakes Towers (15).
