Dubai’s commercial real estate market witnessed a surge in sales during the second quarter of 2025, with total transaction value reaching AED31 billion ($8.44 billion), a 50 percent year-on-year increase. This sharp rise in value, up from AED20.75 billion in Q2 2024, underscores a market that continues to evolve in both scale and sophistication.
In its most recent report, CRC Property noted that this performance signals a decisive return of investor confidence, supported by the launch of several high-quality off-plan commercial developments and rising demand for Grade A office and industrial assets.
Office market transactions soar 93 percent
The office segment in Dubai’s commercial real estate market was the standout performer last quarter, with sales increasing by 93 percent year-on-year to reach AED2.62 billion. This jump points to sustained demand from both investors and end-users, driven by business expansion, foreign investment inflows and a renewed appetite for ownership over leasing.
In terms of transaction volume, 965 office units were sold in Q2 2025, reflecting a 26 percent increase from the 764 units sold in Q2 2024. This rise in both value and volume indicates a healthy and active market, with growing confidence from both investors and end-users in Dubai’s office sector.
The report revealed that Business Bay and Jumeirah Lake Towers (JLT) continued to dominate activity, but emerging zones like Motor City and Barsha Heights also climbed the ranks — signaling that decentralized locations offering flexible layouts and competitive pricing are gaining ground.
Overall, the office segment in Q2 2025 continues to build on strong momentum, underpinned by robust annual growth and stable quarterly activity, signalling steady demand for commercial office spaces across Dubai.
Off-plan office sales highlight market shift
CRC’s data also reveals a striking share of transactions coming from off-plan office sales, highlighting a clear market shift towards new, premium developments offering modern infrastructure and flexible configurations across Dubai’s commercial real estate market. Landmark launches like Omniyat’s Lumena tower in Business Bay are setting new benchmarks in workspace design and amenities, attracting both investors and end-users alike.
In Q1, the value of off-plan transactions totaled AED800 million and this is expected to continue to rise. Looking ahead, Dubai’s office market is set to witness a steady influx of new supply, with 680,000 sqm expected to be delivered across the city by 2027. This upcoming stock will be concentrated in key areas such as Business Bay, Motor City, Majan and Dubailand, all of which have seen rising demand in recent quarters.
“The success of off-plan reflects a maturing buyer mindset — long-term occupiers and institutional investors are committing to spaces that match tomorrow’s needs, not just today’s,” said Behnam Bargh, managing director at CRC.
Office prices rise 22 percent this year
The average selling price for secondary office sales in Dubai’s commercial real estate market has shown a remarkable upward trend in recent years. After a gradual decline from 2014, when prices were at AED1,198 per square foot, the market bottomed out around 2020 with prices near AED761 per square foot.
Since then, prices have recovered strongly, rising to AED1,413 per square foot in 2024. Most notably, the price continued to accelerate in 2025, reaching AED1,724 per square foot, which represents a substantial 22 percent year-on-year growth from 2024.
This sharp increase reflects heightened demand for secondary office spaces, driven by limited new supply, improved market sentiment and rising investor interest in established office properties.
Warehouse sector shows robust momentum
Average sale prices for warehouses in Dubai’s commercial real estate market hit AED22.2 million, up a remarkable 107 percent from the same period last year. This growth is largely attributed to limited supply and strong demand for high-spec assets in established industrial hubs such as Dubai Industrial City, DIP and JAFZA.
Larger transaction sizes point to consolidation in the logistics sector, where occupiers are seeking efficient, scalable and strategically located facilities to support regional operations.
Read: Abu Dhabi real estate transactions jump 39 percent in H1 2025, hitting AED51.72 billion
Leasing market accelerates
On the leasing front, CRC reported a 30 percent increase in deals quarter-on-quarter, driven by renewed business formations and expanding tenant demand.
The average leasing price for offices rose to AED480,768, nearly doubling year-on-year (up 95 percent), indicating robust occupier demand for larger, fitted and strategically located office spaces. This significant growth is largely driven by higher take-up in prime locations, increased demand for larger or fully fitted units, and a general shift towards higher-quality office spaces as businesses seek to upgrade their premises in a competitive environment.
In the retail segment, the average leasing price stood at AED433,147, representing a 7 percent year-on-year increase. While more moderate than other sectors, this growth reflects stable interest in community and high-footfall retail spaces, with tenants showing readiness to pay a premium for visibility and location, especially in emerging residential areas.
Warehousing recorded the highest average leasing price at AED1.26 million, also with a 95 percent year-on-year increase. This substantial rise is driven by sustained demand from the logistics, manufacturing and e-commerce sectors, combined with a limited supply of large, high-specification warehouse facilities in strategic industrial zones.
