Dubai’s commercial real estate sector maintained strong momentum in Q3 2025, recording total sales of Dhs30.38bn — a 31 per cent year-on-year increase, according to CRC Property’s latest Market Report. This solid performance reinforces Dubai’s position as a global business destination and highlights sustained investor confidence across the office, retail, and industrial asset classes.
The uptick in activity is supported by the emirate’s broader economic resilience, ongoing corporate relocations, and strategic infrastructure expansion across key business districts, free zones, and mixed-use communities.
Analysts note that the commercial sector is entering a more mature phase of growth, driven by both local and international investors, along with SMEs and corporates increasingly favouring ownership over long-term leasing.
The office market was the standout performer in Q3 2025, reaching Dhs3.1bn in sales across 1,153 units — up 18 per cent quarter-on-quarter and an impressive 93 per cent year-on-year. Transaction volumes followed suit, rising 19 per cent quarter-on-quarter and 45 per cent year-on-year, highlighting strong market confidence and sustained demand for quality office spaces.
According to Yogesh Yerikireddi, JLT Area Manager at CRC:
“The Dubai office market remained exceptionally strong in Q3 2025, fuelled by record demand for Grade A and ESG-focused towers. With vacancy at historic lows, fitted and vacant offices for sale are attracting unprecedented investor interest. Limited premium stock, combined with robust corporate relocations and expansion activity, continues to drive rents and capital values upward across major free zones.”
Business Bay topped the list with 328 office transactions, followed by Jumeirah Lakes Towers (JLT) with 277 deals. Majan (112), Jumeirah Village Circle (110), and Barsha Heights (71) rounded out the top five. This distribution reflects the ongoing decentralisation of Dubai’s commercial market, with high-quality office spaces increasingly available in emerging mixed-use districts.
Smaller office assets driving transaction volumes
Despite higher deal numbers, overall commercial sales value slipped by 2 per cent quarter-on-quarter, signalling strong appetite for smaller-ticket offices. Units priced between Dhs1.5–2m saw a 34 per cent quarterly rise, while those in the Dhs500,000–1m bracket surged 50 per cent, showing growing interest from SMEs, start-ups, and businesses seeking cost-effective ownership.
CRC data also suggests a shift in investor strategy, with strata offices offering attractive yields and enabling occupiers to secure long-term operational space — particularly in high-demand areas such as JLT and Business Bay.
Off-plan commercial activity remained strong as well, with Q3 transactions totalling Dhs2.4bn across 1,101 deals. Office and retail off-plan sales contributed Dhs1.86bn from 640 transactions, reflecting confidence in future supply and healthy demand absorption.
Looking ahead, Dubai’s office market is set to grow further with around 680,000 sqm of new office supply expected by 2027, primarily in Business Bay and Motor City. Experts anticipate continued rent growth as this pipeline supports rising tenant requirements.
Among the most notable upcoming developments is Lumena Alta by Omniyat, a 73-storey Business Bay tower offering 78,000 sqm of premium office space, 18 double-deck lifts, 1,000 parking bays, and luxury amenities such as a sky pool and signature dining — scheduled for Q1 2030.
Another key project is HQ by Rove at Marasi Bay, featuring 500,000 sq. ft. across 23 office floors, modular layouts, high-speed elevators, EV charging, bicycle facilities, and a moving café elevator. Completion is set for Q1 2029. Both developments highlight Dubai’s commitment to premium, flexible, and ESG-aligned workspaces.
Retail sector shows strong recovery
Retail real estate also rebounded in Q3 2025, with transactions totalling Dhs1.15bn across 437 deals — up 95 per cent quarter-on-quarter and 55 per cent year-on-year. Deal volumes rose similarly, showcasing renewed optimism among investors and end-users.
Liza Esenbek, Head of Retail and F&B at CRC, explained:
“The retail sector’s momentum is driven by high-net-worth tourism and rising consumer demand for value-oriented, personalised, and experiential concepts. The health and wellness category — spanning premium fitness, specialty foods, and recovery services — is outperforming most segments and fuelling leasing demand across Dubai.”
International City led the retail market with 85 transactions, followed by Majan (66), Business Bay (45), JVC (43), and Dubai Marina (27). This spread reflects broad-based demand across both established and emerging communities.
Average secondary office prices climbed to Dhs1,685 per sq. ft in Q3 2025 — the highest in over a decade and up 19 per cent year-on-year — driven by strong demand for Grade A strata offices and tight ready supply in districts such as Business Bay and JLT. After several years of recovery from the 2019–2020 downturn, prices have now surpassed pre-2015 levels, reaffirming Dubai’s strong investment appeal.
Buyer and tenant behaviour
Buyer and tenant trends presented a mixed picture in Q3. Buyer leads increased 47 per cent year-on-year but slipped 18 per cent quarter-on-quarter after a robust first half. Office leads rose 51 per cent annually but declined 16 per cent over the quarter. Retail enquiries dropped 29 per cent year-on-year and 28 per cent quarter-on-quarter, while warehouse demand remained steady.
Tenant enquiries followed similar trends: up 54 per cent year-on-year but down 12 per cent quarter-on-quarter, mirroring seasonal patterns. Office tenant leads grew 46 per cent year-on-year, while retail rose 36 per cent. Warehouse tenant activity increased modestly, supported by logistics and e-commerce firms gearing up for year-end cycles.
Ashley Sonnenberger, Industrial Manager at CRC, added:
“We’ve seen another rise in rental prices, especially in areas like DIP. Interest in land for new warehouse development continues to grow, and many buyers and tenants are now exploring more affordable locations outside Dubai.”
Key upcoming office projects
Lumena Alta (Omniyat, Business Bay)
- 73-storey tower
- 78,000 sqm office space
- 18 double-deck elevators, 1,000 parking spaces
- Sky pool, signature restaurant, fitness centres
- Completion: Q1 2030
HQ by Rove (Marasi Bay)
- 23 office floors, 500,000 sq. ft.
- Modular layouts, high-speed lifts
- EV charging, bicycle parking
- Moving café elevator
- Completion: Q1 2029
These developments underscore Dubai’s focus on innovative, flexible, and ESG-friendly office environments.
Office transactions by district
Business Bay — 328 deals
Top-performing business hub with strong corporate presence and high rental yields.
Jumeirah Lakes Towers (JLT) — 277 deals
Favoured by SMEs and first-time investors; offers flexible office options.
Majan — 112 deals
Gaining traction due to competitive pricing and strategic location.
Jumeirah Village Circle (JVC) — 110 deals
Cost-effective office units near residential areas.
Barsha Heights (Tecom) — 71 deals
Established secondary market with rising demand for tech-enabled spaces.
Smaller offices priced under Dhs2m accounted for more than half of all transactions, showing strong participation from smaller investors as well as corporates.
Market performance and leasing trends
The average office sale price at CRC reached Dhs3.86m, up 14 per cent quarter-on-quarter, driven by fresh demand for premium assets in Business Bay, JLT, and other rising corridors. Year-on-year, prices eased 3 per cent, showing natural market stabilisation after strong gains in 2024.
Leasing trends showed a rising preference for flexible payment structures:
- 4 cheques: 64 per cent of leases (up 9 per cent)
- 2 cheques: 22 per cent
- 1 cheque: 11 per cent
- 3 cheques: 3 per cent
Overall, tenant demand stayed resilient, with office and retail activity showing strong year-on-year gains despite moderate quarterly adjustments.
Dubai’s commercial property sector remains in a solid, selective expansion phase. The office market continues to lead performance, driven by SMEs, corporate relocations, and owner-occupier demand. Retail has surged back, while industrial and warehouse sectors show consistent strength from logistics and e-commerce players.
With historically low vacancies, limited Grade A supply, and a robust pipeline of high-quality developments, Dubai is positioned to remain one of the world’s most attractive commercial real estate markets. Strong activity is expected to continue into 2026 as the city strengthens its reputation as a resilient, forward-looking global business hub.
