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Dubai’s commercial real estate market has demonstrated remarkable resilience and growth in the second quarter of 2025, driven by soaring transaction values and a shift towards premium properties. Despite a slight dip in transaction volume, the total value of commercial sales climbed sharply, reflecting increased investor confidence and a maturing market. This upward trajectory signals Dubai’s continuing emergence as a dynamic hub for commercial property investment in the region.
Commercial sales value hits Dhs31.03bn
The total value of commercial real estate transactions in Dubai reached Dhs31.03bn in Q2 2025, marking a substantial 50 per cent increase compared to Dhs20.75bn recorded in the same period last year. This growth highlights a robust demand for commercial assets and underscores investors’ confidence in Dubai’s property sector, CRC Property’s latest Q2 2025 Commercial Property Market Report said.
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However, while the value of sales surged, the overall volume of transactions saw a slight decline. The number of commercial property sales dropped by 1 per cent to 2,883 deals from 2,915 in Q2 2024. This suggests a market increasingly driven by fewer but larger and more valuable deals.
Quarter-on-quarter, the value of transactions rose by 6 per cent compared to Q1 2025, which registered Dhs 29.25bn. In contrast, the transaction volume declined by 14 per cent, falling from 3,350 sales in Q1 to 2,883 in Q2. These figures indicate a clear trend towards high-value sales dominating the market, possibly driven by the sale of larger commercial assets and prime locations.
Overall, the commercial real estate sector in Dubai shows signs of steady maturation, with rising transaction values balancing out the slight contraction in deal volume.
Office market: Strong growth despite slight quarterly dip
The office segment within Dubai’s commercial real estate sector has been a standout performer in Q2 2025. Total office sales surged to Dhs 2.62bn during the quarter, representing an impressive 93 per cent increase compared to Dhs 1.36bn in Q2 2024. This dramatic rise underlines sustained demand for office spaces fueled by business expansion, increased foreign investment, and a recovering post-pandemic economy.
The number of office units sold also climbed, with 965 transactions recorded, up 26 per cent from 764 units in Q2 2024. The simultaneous growth in both value and volume demonstrates a healthy and active office market, reflecting investor and tenant confidence.
However, quarter-on-quarter figures show a slight contraction in value, with office transactions dropping 5 per cent from Dhs 2.77bn in Q1 2025. Despite this, transaction volume rose marginally by 3 per cent from 933 to 965 sales, suggesting a shift towards a higher number of mid-tier office deals. This could indicate changing buyer preferences and pricing adjustments within the market.
The office segment’s strong year-on-year growth and steady quarterly activity underscore its resilience and continuing appeal to investors and businesses alike.
Business Bay dominates as top office location
Office transactions in Dubai during Q2 2025 were heavily concentrated in key business districts, with the top five locations accounting for nearly 90 per cent of all sales.
Business Bay led the market with 356 transactions, representing 36.9 per cent of total office sales. This reaffirms Business Bay’s status as Dubai’s premier commercial hub, thanks to its strategic location and modern office infrastructure that attracts both local and international investors.
Following closely was Jumeirah Lake Towers (JLT), with 312 transactions, or 32.3 per cent of the total. JLT’s accessibility and variety of office sizes continue to make it popular among small and medium enterprises as well as established companies.
Motor City ranked third with 86 transactions (8.9 per cent). Its rising popularity reflects growing demand for suburban office options offering competitive pricing and easier commutes.
Barsha Heights (Tecom) came in fourth with 72 sales, accounting for 7.5 per cent of transactions. Its proximity to key transport links supports its strong performance.
Dubai Silicon Oasis rounded out the top five, with 36 transactions (3.7 per cent). The free zone’s focus on tech and innovation appeals to startups and technology firms.
These leading districts clearly dominate Dubai’s office market, highlighting a strong preference for established and well-connected business hubs.
Upcoming supply and off-plan projects signal future growth
Looking ahead, Dubai’s office market is set to benefit from a significant influx of new supply, with an estimated 680,000 square metres expected to be delivered by 2027. New developments will focus on key areas such as Business Bay, Motor City, Majan, and Dubailand — all of which have seen rising demand recently.
The off-plan segment is also gaining momentum. In Q1 2025, off-plan transactions reached Dhs 800m ($218m), and this figure is projected 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 offer 91 office units across 582,000 square feet, featuring world-class amenities such as the region’s first-ever Sky Theatre, a wellness suite, a private members’ club, and 19 high-speed elevators. Lumena is expected to attract premium tenants looking for cutting-edge workspaces.
Dubai’s commercial real estate market shows strength and maturity
Dubai’s commercial real estate market has delivered strong results in Q2 2025, with transaction values reaching record highs despite a slight dip in deal volume. The surge in high-value commercial property sales, combined with robust growth in the office segment, signals a healthy and evolving market.
Key business districts continue to dominate transactions, underscoring Dubai’s role as a major commercial hub. Meanwhile, significant new supply and off-plan projects are poised to sustain the market’s growth trajectory over the next few years.
As investor confidence remains high and demand for premium office space grows, Dubai’s commercial real estate sector is well-positioned for continued expansion and increased market sophistication.
