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Dubai’s commercial real estate sector has shown significant resilience and growth during the second quarter of 2025, driven by a surge in transaction values alongside a focus on high-end properties. Although there was a minor decrease in the volume of transactions, the overall value of commercial sales experienced a substantial increase, highlighting boosted investor confidence in a mature marketplace. This upward trend indicates that Dubai is solidifying its position as a vibrant center for commercial property investment in the region.
Commercial sales value reaches Dhs31.03bn
The cumulative value of commercial real estate transactions in Dubai hit Dhs31.03bn in Q2 2025, representing a remarkable 50 percent rise from Dhs20.75bn during the same quarter last year. This increase showcases a strong appetite for commercial properties and reflects the trust investors have in Dubai’s real estate market, as noted in CRC Property’s recent report on the Q2 2025 Commercial Property Market.
Read about the role of brokers in Dubai’s real estate market in 2025.
While the sales value saw a boost, the total number of transactions slightly decreased. The number of commercial property sales fell by 1 percent to 2,883 from 2,915 in Q2 2024. This trend suggests that the market is leaning towards fewer but more substantial and valuable deals.
Compared to Q1 2025, the value of commercial transactions increased by 6 percent, climbing from Dhs29.25bn. In line with this, transaction volume saw a 14 percent decrease, dropping from 3,350 sales in Q1 to 2,883 in Q2. These statistics indicate a clear preference for higher-value sales, likely influenced by transactions involving larger commercial properties and prime locations.
Overall, Dubai’s commercial real estate market appears to be steadily maturing, with an increase in transaction values compensating for the small decrease in deal volume.
Office market: Significant growth amidst slight quarterly decline
The office segment within Dubai’s commercial real estate landscape has emerged as a strong performer in Q2 2025. Total office sales surged to Dhs2.62bn during the quarter, which represents an impressive 93 percent hike from Dhs1.36bn in Q2 2024. This remarkable growth underscores sustained demand for office spaces driven by business development, increased international investment, and ongoing recovery from the pandemic.
Additionally, the volume of office unit sales rose, with 965 transactions noted, reflecting a 26 percent increase from 764 units in Q2 2024. The simultaneous rise in both transaction value and volume illustrates a dynamic and active office market, displaying confidence from both investors and tenants.
However, on a quarter-over-quarter basis, there was a slight decline in the value of transactions, as office sales fell by 5 percent from Dhs2.77bn in Q1 2025. Nevertheless, transaction volume increased modestly by 3 percent from 933 to 965 sales, indicating a shift towards a higher frequency of mid-range office deals. This may reflect changing buyer preferences and adjustments in pricing within the sector.
The strong year-on-year growth along with stable quarterly activity in the office segment highlights its resilience and continuous appeal to both investors and businesses.
Business Bay emerges as the leading office location
During Q2 2025, office transactions in Dubai were predominantly centered in several key business districts, with the top five areas contributing nearly 90 percent to total sales.
Business Bay topped the list, recording 356 transactions, representing 36.9 percent of overall office sales. This solidifies Business Bay’s position as Dubai’s premier commercial hub, thanks to its strategic location and modern office infrastructure that attracts both local and international investors.
Jumeirah Lake Towers (JLT) followed closely with 312 transactions, accounting for 32.3 percent of total sales. The accessibility and variety of office sizes available make JLT a popular choice for both small and medium enterprises, as well as established firms.
Motor City came in third, with 86 transactions (8.9 percent), reflecting the growing demand for suburban office spaces that offer competitive pricing and easier commuting options.
Barsha Heights (Tecom) secured the fourth position with 72 transactions, which corresponded to 7.5 percent of sales, bolstered by its proximity to essential transport links.
Dubai Silicon Oasis completed the top five with 36 transactions (3.7 percent), appealing primarily to startups and technology companies due to its focus on innovation and technology.
These leading areas vigorously dominate Dubai’s office market, indicating a clear preference for established and well-connected business locations.
New supply and off-plan projects herald future growth
Looking to the future, Dubai’s office market is anticipated to benefit from a substantial influx of new developments, with approximately 680,000 square meters expected to come online by 2027. New projects are set to be concentrated in key areas such as Business Bay, Motor City, Majan, and Dubailand, all of which have recently experienced increased demand.
The off-plan segment is also gaining traction, with off-plan transactions reaching Dhs800m in Q1 2025. This figure is expected to rise further with the introduction of new projects into the market.
Among the noteworthy upcoming developments is Omniyat’s Lumena project, a luxury Grade A office building that will feature 91 office units across 582,000 square feet, inclusive of cutting-edge amenities such as the first-ever Sky Theatre in the region, a wellness suite, a private members’ club, and 19 high-speed elevators. Lumena is expected to attract high-end tenants seeking top-tier workspaces.
Dubai’s commercial real estate market showcases strength and sophistication
The results from Q2 2025 reflect a strong performance in Dubai’s commercial real estate market, with transaction values reaching new highs despite a minor reduction in deal volume. The increase in high-value commercial property transactions, alongside significant growth in the office market, demonstrates a healthy and evolving marketplace.
Leading business districts continue to dominate sales, reinforcing Dubai’s status as a significant commercial center. At the same time, considerable new supply and off-plan projects are expected to support the market’s upward growth trajectory in the coming years.
With investor confidence remaining robust and a growing demand for premium office space, Dubai’s commercial real estate market is well-positioned for ongoing expansion and enhanced sophistication.