Dubai’s Commercial Property Market Surges 31% to $8.27bn in Q3 2025

Dubai, United Arab Emirates – October 28, 2025: Dubai’s commercial real estate sector maintained its remarkable growth trajectory in the third quarter of 2025, with total sales reaching $8.27 billion (AED 30.38 billion) — a 31% increase compared to the same period last year, according to CRC Property’s Q3 2025 Market Report.

Office Market Leads Strong Performance

The office segment emerged as the primary growth driver, supported by high demand, rising values, and increased investor confidence across major business districts.

Total office sales in Q3 amounted to $844 million (AED 3.1 billion) across 1,153 units, marking an 18% quarter-on-quarter rise and an impressive 93% increase year-on-year. Transaction volumes grew 19% compared to Q2 and 45% year-on-year, showcasing the city’s continued attraction for regional and international businesses.

Yogesh Yerikireddi, JLT Area Manager at CRC Property, said:

“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.”

Key Districts Drive Transaction Growth

Among Dubai’s top-performing areas, Business Bay led with 328 office transactions, followed by Jumeirah Lakes Towers (JLT) with 277 deals. Majan and Jumeirah Village Circle (JVC) recorded 112 and 110 transactions, respectively, while Barsha Heights (Tecom) completed the top five with 71 deals.

Off-Plan Commercial Market Gains Momentum

Dubai’s off-plan commercial sector also witnessed steady expansion, with total transactions worth $650 million (AED 2.4 billion) across 1,101 deals. Office and retail projects accounted for $507 million (AED 1.86 billion) through 640 transactions, highlighting robust investor confidence in Dubai’s long-term commercial development pipeline.

Looking ahead, approximately 680,000 square meters of new office supply is expected to be delivered by 2027, primarily in Business Bay and Motor City, addressing rising demand for high-quality commercial spaces.

Retail Segment Records Sharp Rebound

The retail property segment experienced a significant rebound in Q3 2025, with total transaction value reaching $313 million (AED 1.15 billion) across 437 deals. This represents a 95% quarter-on-quarter and 55% year-on-year increase, marking the strongest quarterly performance since 2022.

Transaction volumes mirrored this growth, jumping 88% QoQ and 37% YoY, driven by renewed optimism among investors and end-users amid improving market sentiment.

Buyer Activity Reflects Enduring Confidence

According to CRC, the average selling price for secondary offices rose to AED 1,685 ($459) per sq. ft in Q3 2025 — a 19% year-on-year increase and the highest level in over a decade.

Buyer leads across the commercial sector increased 47% year-on-year, underscoring sustained demand despite a moderate 18% quarterly slowdown, which CRC attributed to market stabilization following an active first half of the year.

The office market continues to lead Dubai’s commercial real estate activity, supported by SMEs, corporate relocations, and end-users opting for ownership over leasing. Even with minor quarterly adjustments, the broader trend reflects Dubai’s enduring strength as a global business hub and a preferred destination for commercial investment.