- April 21, 2026
- 6
- Real Estate
By Kiana Jehangir
Dubai’s commercial property sector continues to show remarkable growth, with the office segment leading the charge in the second quarter of 2025. The city’s evolving business landscape, combined with a steady influx of foreign investment and strong demand for high-quality commercial spaces, has propelled the market to new heights.
Market Performance: A Record Quarter for Office Sales
Dubai’s commercial property market recorded AED 31 billion ($8.44 billion) in transactions during Q2 2025—a 50% year-on-year increase compared to Q2 2024. This impressive growth reflects heightened investor confidence, fueled by premium off-plan developments and expanding opportunities in the office and industrial sectors.
The office segment stood out as a top performer, achieving a 93% jump in sales value, totaling AED 2.62 billion. Transaction volume also grew significantly, with 965 office units sold, marking a 26% increase from the same period last year.
This momentum highlights a shift in demand towards ownership over leasing, driven by:
- Business expansions in Dubai’s fast-growing economy
- Rising foreign direct investment inflows
- Institutional and long-term investors seeking modern, strategically located spaces
Hotspots for Office Investment
While Business Bay and Jumeirah Lake Towers (JLT) continue to dominate sales activity, emerging zones like Motor City, Barsha Heights, and Majan are gaining traction. These decentralized locations are attracting buyers with flexible layouts, competitive pricing, and proximity to new residential hubs, creating fresh opportunities outside the city’s traditional commercial centers.
Off-Plan Commercial Deals on the Rise
A notable trend in Q2 is the surge in off-plan office sales, reflecting Dubai’s push towards state-of-the-art workspacesdesigned for tomorrow’s businesses. Developers like Omniyat are setting new benchmarks with projects such as Lumena Tower in Business Bay, offering cutting-edge design, sustainable infrastructure, and advanced amenities to meet evolving corporate needs.
With 680,000 sqm of new office space expected to be delivered by 2027, off-plan investment continues to gain popularity, allowing buyers to secure premium locations before completion.
Price Growth Outpaces Expectations
Secondary office sales have experienced a sharp 22% increase year-on-year, reaching an average of AED 1,724 per square foot. This marks a strong recovery from the market’s 2020 low of AED 761 per sq. ft., highlighting renewed demand for established office spaces despite limited supply.
Warehouse assets also saw remarkable growth, with average sale prices hitting AED 22.2 million, up 107% from last year, driven by high demand from logistics, manufacturing, and e-commerce operators seeking scalable, strategically located facilities.
Leasing Market Gains Momentum
Leasing activity mirrored the sales boom, with a 30% quarter-on-quarter increase in deals across offices, retail, and warehouse sectors. Average leasing prices rose significantly, particularly for larger, fitted, and prime office units, as businesses upgraded their premises to match evolving workplace needs.
- Office leasing: AED 480,768 on average (+95% YoY)
- Retail leasing: AED 433,147 on average (+7% YoY)
- Warehouse leasing: AED 1.26 million on average (+95% YoY)
This uptick underscores Dubai’s position as a regional business hub, attracting both global corporations and fast-growing local enterprises.
Outlook: A New Era for Commercial Real Estate
With strong investor sentiment, sustained demand for Grade A offices, and substantial new supply set to enter the market by 2027, Dubai’s commercial property sector is poised for continued growth. The combination of rising prices, increased off-plan activity, and expanding leasing demand makes Q3 and beyond a promising period for investors seeking opportunities in Dubai’s thriving office market.
