Previous Next

Dubai’s commercial real estate sector has demonstrated extraordinary resilience and growth, with transaction values reaching AED 31 billion in Q2 2025 — a remarkable 50% increase compared to the same period last year.

According to new market data released by REDIX and Open Hub, this surge reflects both investor confidence and structural demand across key commercial asset classes, particularly offices and warehousing.

Unprecedented Growth Across Segments

The office sector led the way with an impressive 93% year-on-year increase in sales. The average sales price stood at approximately AED 1,724 per square foot, driven by limited supply and continued interest from domestic and international buyers.

The warehousing segment also posted strong gains, with transaction volumes rising by 107% compared to Q2 2024. The average sales price for warehouse assets reached AED 22.2 million, representing a 28% increase quarter-on-quarter.

Dubai’s Real Estate Momentum Continues

The commercial market’s performance aligns with a broader upward trend across Dubai’s property sector. Q2 2025 witnessed record-breaking activity, with:

• Over 49,600 real estate transactions recorded — an 82% increase from Q2 2023

• Total property value reaching AED 147.6 billion, up 42% year-on-year

• Aggregate sales value across all segments climbing to AED 184.3 billion

These figures highlight the ongoing strength of Dubai’s property market, underpinned by robust investor sentiment, population growth, and proactive government policies that continue to position the emirate as a global investment hub.

Key Drivers of Commercial Demand

Several macro and market-specific factors are contributing to the acceleration of commercial property activity in Dubai:

• Investor Confidence: Dubai’s stable regulatory framework, tax efficiency, and global connectivity continue to attract foreign direct investment.

• Evolving Occupier Needs: Businesses are expanding their physical footprints post-pandemic, particularly in logistics, technology, and professional services.

• Supply Constraints: A limited pipeline of new office and warehouse developments is contributing to price growth and heightened buyer interest.

• Strategic Vision: Initiatives such as Dubai Economic Agenda D33 and ongoing infrastructure investment are reinforcing long-term commercial viability.

Implications for Market Stakeholders

For Developers:

This is an opportune time to bring new commercial inventory to market. Well-positioned assets, particularly in business hubs and logistics corridors, are likely to attract strong buyer interest.

For Investors:

Dubai’s commercial property segment presents compelling opportunities for both capital appreciation and income generation. The growth in asset values and transaction volumes suggests a favorable entry point.

For Corporate Occupiers:

The shift from leasing to ownership is becoming increasingly common as companies seek long-term stability amid rising rents and limited Grade A office supply.

Conclusion

Dubai’s commercial real estate sector is experiencing one of its strongest periods of growth in recent history. With sales up 50% year-on-year and continued strength across offices and warehouses, the market is not only keeping pace with Dubai’s overall property momentum — it is playing a central role in driving it.

As the emirate continues to position itself as a leading global business and investment destination, the outlook for commercial real estate remains firmly positive.

If you are active in the commercial real estate sector — whether as an investor, developer, or corporate occupier — now is the time to engage, evaluate opportunities, and consider strategic moves aligned with this growth cycle.