Dubai Commercial Real Estate Boom: Office Demand Reaches Record High

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.

Strong Increase in Transactions at the Office

The growth of Dubai’s commercial real estate market is still being driven by the office sector. Office sales in Q3 2025 totaled AED 3.1 billion across 1,153 units, representing a remarkable 93% annual growth and an 18% quarterly increase.
The overall number of transactions increased by 19% from the previous quarter and 45% year over year, indicating that corporations, startups and international investors continue to demand contemporary office space in Dubai.

Reduction in Premium Office Vacancy Rates

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.

Top Locations for Transactions in the Office

Business Bay led the office market with 328 transactions, followed by Jumeirah Lake Towers (JLT) with 277 transactions, per CRC data. Majan, Barsha Heights, and Jumeirah Village Circle (JVC) are other bustling neighborhoods. These numbers are consistent with regional reports from the DMCC, which show a sharp increase in foreign business entry in sectors like media, trade, fintech, and professional services.

Investors Pay Attention to Sustainable and Modern Offices

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,”

Increase in the Off-Plan Sector

Office and retail space accounted for AED 1.86 billion of the AED 2.4 billion in off-plan real estate transactions, which also included projects that were still under construction.
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.

Reviving Sales of Retail and Commercial Units

The retail and commercial unit segment in Dubai also saw strong growth, with transaction values rising to AED 1.15 billion, a 95% quarterly and 55% annual increase. Rising tourism (more than 12.4 million visitors in the first nine months of 2025), high domestic spending, and the growth of contemporary shopping destinations like City Walk, Dubai Hills, Palm Jumeirah and Al Wasl Boulevard are the main causes of this increase.

Price hikes and a surge in investor demand

The secondary market saw the highest average office sale price in a decade, rising to AED 1,685 per square foot. The commercial real estate market’s overall demand from investors rose 47% over the prior year, highlighting Dubai’s ongoing appeal as a secure and lucrative place to invest.

Prospects for the Commercial Real Estate Market in Dubai in 2026

The expansion of free zones, the influx of wealthy investors, stable economic policies and zero income tax are all expected to contribute to the steady growth of Dubai’s commercial real estate market through 2026, according to experts. Dubai is now closer than ever to emerging as one of the world’s most vibrant hubs for investment and trade.

Conclusion

The commercial real estate market in Dubai began a new period of growth in 2025. The resurgence of the retail industry, the increase in off-plan project transactions and the growing demand for contemporary office space all demonstrate Dubai’s continued standing as a dependable location for global investors. A promising future for real estate investment in Dubai is being shaped by robust economic foundations, a prime geographic location, business-friendly laws and cutting-edge urban infrastructure.

Source: https://www.khaleejtimes.com