In the third quarter of 2025, Dubai’s commercial real estate market expanded remarkably. AED 30.38 billion was the total amount of commercial real estate transactions during this time, a 31% increase from the previous year, according to a recent report by CRC Property. These numbers demonstrate Dubai’s ongoing status as a major international business and investment destination and show that purchasing commercial real estate in Dubai is still one of the most lucrative and desirable choices for both domestic and foreign investors.
The growth of Dubai’s commercial real estate market is still being driven by the office sector. With office sales of AED 3.1 billion across 1,153 units in Q3 2025, there was an impressive 93% annual growth and an 18% quarterly increase.
Companies, startups and foreign investors continue to demand modern office space in Dubai, as evidenced by the overall number of transactions, which rose by 19% from the previous quarter and 45% year over year.
The vacancy rate for Grade A offices in Dubai has dropped to its lowest level in more than ten years, according to reports from top global consulting firms like CBRE and Knight Frank. Given that many multinational firms have set up their Middle East headquarters in Dubai’s free zones, this trend is especially noticeable there.
According to CRC data, Business Bay had the most transactions (328) in the office market, followed by Jumeirah Lake Towers (JLT) (277). Other busy areas include Majan, Barsha Heights, and Jumeirah Village Circle (JVC). The DMCC’s regional reports, which demonstrate a dramatic rise in foreign company entry in industries like media, trade, fintech, and professional services, are in line with these figures.
According to Yogesh Yerikireddi, JLT area manager at CRC Property:
“The Dubai office market remained exceptionally strong through Q3 2025, led by record demand for Grade A and ESG-compliant towers. With vacancy at historic lows, fitted and vacant commercial offices for sale are seeing unprecedented investor interest. Limited premium supply, coupled with strong corporate relocations and expansion demand, continues to push rents and capital values upward across key free zones,”
Of the AED 2.4 billion in off-plan real estate transactions, which also included projects that were still in the construction stage, AED 1.86 billion was allocated to office and retail space.
Investor confidence in Dubai’s future urban development is reflected in this trend. More than 680,000 square meters of new office space are expected to hit the market by 2027. The main regions that are anticipated to see the highest demand are Dubai South, Business Bay, and Motor City.
With transaction values increasing to AED 1.15 billion, a 95% quarterly and 55% annual increase, Dubai’s retail and commercial unit segment also experienced robust growth. The primary drivers of this increase are rising domestic spending, tourism (more than 12.4 million visitors in the first nine months of 2025) and the expansion of modern shopping destinations like City Walk, Dubai Hills, Palm Jumeirah and Al Wasl Boulevard.
At AED 1,685 per square foot, the average office sale price on the secondary market reached its highest level in ten years. Dubai’s continued appeal as a safe and profitable place to invest is demonstrated by the 47% increase in investor demand for commercial real estate over the previous year.
Experts predict that Dubai’s commercial real estate market will continue to grow steadily through 2026 due to the expansion of free zones, the influx of wealthy investors, stable economic policies, and zero income tax. Dubai is now closer than ever to becoming one of the most active trading and investment hubs in the world.
The commercial real estate market in Dubai began a new period of growth in 2025. Dubai’s continued reputation as a reliable destination for international investors is evidenced by the recovery of the retail sector, the rise in off-plan project transactions and the rising demand for modern office space. Strong economic underpinnings, a strategic location, business-friendly regulations and state-of-the-art urban infrastructure are all contributing to Dubai’s promising real estate investment future.
Source: https://www.khaleejtimes.com
