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The commercial real estate sector in Dubai has shown impressive growth and resilience during the second quarter of 2025, marked by substantial increases in transaction values alongside a transition toward higher-end properties. Even with a minor decline in transaction counts, the overall monetary value for commercial sales surged, highlighting heightened investor confidence and a more developed market. This trend underscores Dubai’s ongoing evolution as a vibrant center for commercial real estate investment in the area.
Commercial sales value reaches Dhs31.03bn
In Q2 2025, the total value of commercial real estate transactions in Dubai soared to Dhs31.03bn, representing a remarkable 50 percent increase from Dhs20.75bn during the same time last year. This growth signals a strong appetite for commercial properties and reflects investors’ faith in Dubai’s property market, according to CRC Property’s latest Q2 2025 Commercial Property Market Report.
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Despite the increase in sales value, the total number of transactions has experienced a slight decrease. Commercial property sales fell by 1 percent, declining from 2,915 deals in Q2 2024 to 2,883 in Q2 2025. This trend indicates a market that is shifting toward fewer but larger and more significant transactions.
Compared to the previous quarter, transaction value saw a rise of 6 percent compared to Q1 2025, which had reported Dhs29.25bn. However, the number of transactions fell by 14 percent, dropping from 3,350 sales in Q1 to 2,883 in Q2. These statistics point to a growing trend of higher-value sales taking prominence in the market, possibly influenced by the sale of larger commercial properties and prime locations.
Overall, the commercial real estate sector in Dubai appears to be steadily maturing, with increasing transaction values compensating for a slight reduction in sales volume.
Office market: Notable growth despite minor quarterly decline
In Q2 2025, the office segment of Dubai’s commercial real estate market stood out as a significant achiever. Total office sales skyrocketed to Dhs2.62bn for the quarter, marking a 93 percent increase from Dhs1.36bn in Q2 2024. This impressive growth is fueled by ongoing demand for office spaces, driven by business development, an influx of foreign investment, and a recovering economy post-COVID-19.
The number of office units sold also increased, reaching 965 transactions, which is a 26 percent rise from 764 units sold in Q2 2024. The simultaneous rise in both sales value and volume indicates a vigorous office market, showcasing the confidence of investors and tenants alike.
On a quarterly basis, however, there was a slight contraction in the value of office transactions, which dropped 5 percent from Dhs2.77bn in Q1 2025. Nevertheless, the volume of transactions increased slightly by 3 percent from 933 to 965, indicating a shift towards a larger number of mid-tier office deals, possibly reflecting evolving buyer preferences and shifts in pricing within the market.
The strong year-on-year growth and consistent activity within the office segment highlight its resilience and ongoing attractiveness for both investors and businesses.
Business Bay leads as top office location
In Q2 2025, office transactions in Dubai were primarily concentrated in leading business districts, with the top five locations making up approximately 90 percent of all sales.
Business Bay topped the rankings with 356 transactions, which accounted for 36.9 percent of total office sales. This reinforces Business Bay’s reputation as Dubai’s leading commercial hub, thanks to its prime location and modern office infrastructure that draws both local and international investors.
The Jumeirah Lake Towers (JLT) followed closely with 312 transactions, or 32.3 percent of the total. The area’s accessibility and variety of office options continue to attract both small businesses and established firms.
Motor City placed third with 86 transactions (8.9 percent), reflecting its growing popularity due to the demand for suburban office spaces that offer competitive pricing and easier commutes.
Barsha Heights (Tecom) secured the fourth position with 72 sales, accounting for 7.5 percent of all transactions, bolstered by its proximity to essential transport connections.
Finally, Dubai Silicon Oasis rounded out the top five with 36 transactions (3.7 percent). Its focus on technology and innovation continues to attract startups and tech firms.
These prominent districts evidently dominate Dubai’s office market, underscoring a strong preference for established and well-connected business environments.
Upcoming projects signal potential growth
Looking ahead, Dubai’s office market is poised for significant growth, with an expected influx of new supply amounting to about 680,000 square meters to be launched by 2027. Upcoming developments will mainly target areas like Business Bay, Motor City, Majan, and Dubailand, all of which have recently experienced rising demand.
The off-plan market is also gaining traction, with off-plan transactions hitting Dhs800m ($218m) in Q1 2025. This number is projected to increase as more projects enter the pipeline.
Among the anticipated developments, Omniyat’s Lumena project is noteworthy. This luxury Grade A office building will comprise 91 office units within a 582,000 square foot space and will offer state-of-the-art amenities, including the region’s first Sky Theatre, a wellness suite, a private members’ club, and 19 high-speed elevators. Lumena is expected to attract premium tenants seeking innovative work environments.
Strength and maturity characterize Dubai’s commercial real estate market
Dubai’s commercial real estate sector has showcased strong performance in Q2 2025, with transaction values reaching unprecedented heights despite a minor dip in transaction volume. The rise in high-value commercial properties, coupled with robust growth in the office segment, indicates a vibrant and evolving market.
Key business areas consistently dominate transactions, reaffirming Dubai’s position as a significant commercial center. Additionally, the influx of new supply and upcoming projects is expected to support the sector’s growth trajectory in the coming years.
With sustained investor confidence and growing demand for high-quality office space, Dubai’s commercial real estate market is well-prepared for continued expansion and increased sophistication.