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Dubai’s commercial real estate sector has experienced impressive growth and resilience in the second quarter of 2025, driven by significant increases in transaction values and a preference for high-end properties. Although there was a minor decline in transaction volume, the overall value of commercial sales rose sharply, indicating heightened investor confidence and a maturing market landscape. This upward trend positions Dubai as a thriving center for commercial property investments in the region.
Commercial Sales Value Reaches Dhs31.03bn
The overall value of commercial real estate transactions in Dubai hit Dhs31.03bn in Q2 2025, representing a notable 50% increase from Dhs20.75bn during the same period last year. This growth reflects strong demand for commercial assets and underscores investors’ trust in Dubai’s property market, as reported in CRC Property’s latest Q2 2025 Commercial Property Market Report.
However, while sales values soared, the total volume of transactions saw a slight decrease: the number of commercial property sales fell by 1% to 2,883 from 2,915 in Q2 2024. This suggests a market trend increasingly characterized by fewer but larger, more valuable transactions.
Compared to Q1 2025, the transaction value climbed by 6%, rising from Dhs29.25bn. On the other hand, transaction volume dropped by 14%, decreasing from 3,350 sales in Q1 to 2,883 in Q2. These statistics indicate a clear trend towards high-value sales taking precedence in the market, likely fueled by the transactions of larger commercial properties and prime locations.
Overall, the Dubai commercial real estate sector shows signs of steady maturation, with the increase in transaction values balancing out the slight decline in the volume of deals.
Office Market: Solid Growth Despite Minor Quarterly Decrease
The office segment within Dubai’s commercial real estate has shown impressive performance in Q2 2025, with total office sales soaring to Dhs2.62bn, a remarkable 93% increase from Dhs1.36bn in Q2 2024. This surge emphasizes a continuous demand for office spaces, driven by business growth, rising foreign investments, and the recovery of the economy post-pandemic.
The total number of office units sold rose as well, with 965 transactions occurring, reflecting a 26% increase from 764 units in Q2 2024. This simultaneous growth in both value and volume highlights a thriving and vibrant office market, showcasing confidence among investors and tenants.
However, when comparing quarter-on-quarter data, there was a slight decrease in value, with office transactions dropping by 5% from Dhs2.77bn in Q1 2025. Nonetheless, transaction volume rose by a modest 3% from 933 to 965 sales, indicating a shift towards a larger number of mid-tier office deals, suggesting potential changes in buyer preferences and pricing adjustments within the sector.
The office segment’s significant year-on-year growth alongside stable quarterly activity reflects its ongoing resilience and appeal to both investors and businesses.
Business Bay Emerges as Leading Office Location
In Q2 2025, office transactions in Dubai were predominantly concentrated in major business districts, with the top five locations accounting for nearly 90% of total sales.
Business Bay led the way with 356 transactions, making up 36.9% of all office sales. This reaffirms Business Bay’s position as Dubai’s prime commercial hub, attributed to its strategic placement and modern office infrastructure that attracts local and international investors.
Jumeirah Lake Towers (JLT) followed closely, with 312 transactions, or 32.3% of the overall market. The accessibility and variety in office spaces continue to make JLT a favored location for both small-medium enterprises and established firms.
Motor City ranked third with 86 transactions (8.9%), reflecting an increased demand for suburban office spaces offering competitive pricing and better commuting options.
Barsha Heights (Tecom) followed in fourth with 72 sales, accounting for 7.5% of total transactions, aided by its proximity to major transport links.
Lastly, Dubai Silicon Oasis rounded out the top five with 36 transactions (3.7%), appealing to startups and tech companies due to its innovation-focused free zone.
These key districts dominate the office market in Dubai, showcasing a strong preference for established and well-connected business locations.
Future Supply and Off-Plan Projects Indicate Growth Potential
Looking towards the future, Dubai’s office market is expected to benefit from a substantial influx of new supply, with an estimated 680,000 square meters set to be delivered by 2027. New developments are anticipated in strategic locations such as Business Bay, Motor City, Majan, and Dubailand—all of which have seen increased demand in recent times.
The off-plan segment is also gaining traction. In Q1 2025, off-plan transactions amounted to Dhs800m, and this figure is forecasted to rise as new projects enter the market.
Among the upcoming developments, Omniyat’s Lumena project stands out. This luxury Grade A office building will feature 91 office units across 582,000 square feet, incorporating state-of-the-art amenities such as the region’s first Sky Theatre, wellness suites, a private members’ club, and 19 high-speed elevators. Lumena is anticipated to attract prestigious tenants searching for innovative workspaces.
Dubai’s Commercial Real Estate Market Shows Strength and Maturity
Dubai’s commercial real estate landscape has demonstrated strong performance in Q2 2025, with transaction values reaching unprecedented levels despite a slight dip in transaction volume. The rise in high-value commercial property sales, coupled with robust growth in the office market, indicates a healthy and developing sector.
The prominent business districts continue to dominate property transactions, reinforcing Dubai’s significance as a major commercial center. Meanwhile, substantial new supply and off-plan ventures are poised to sustain the market’s growth trajectory in the coming years.
With investor confidence on the rise and demand for premium office space growing, Dubai’s commercial real estate sector is well-positioned for ongoing expansion and increasing sophistication in the market.