Dubai’s commercial real estate market in the second quarter of 2025 demonstrated notable resilience and rapid growth, propelled by a surge in high-value transactions and a clear shift toward premium properties. While the overall deal count dipped slightly, the value of commercial sales climbed sharply, signaling growing investor confidence and a maturing market. This momentum underscores Dubai’s continuing emergence as a dynamic regional hub for commercial property investment, supported by a strong office sector, strategic district dominance, and a pipeline of new supply and off-plan projects that are expected to sustain long-term growth.
Commercial sales value and volume in Q2 2025
Dubai’s commercial real estate market recorded a total sales value of 31.03 billion UAE dirhams in the second quarter of 2025, marking a substantial year-on-year increase of 50 percent from 20.75 billion dirhams in the same period of the previous year. This sharp rise in value reflects robust demand for high-value commercial assets and demonstrates growing investor confidence in Dubai’s property sector, signaling a maturing and more sophisticated market environment where fewer, but larger, deals are becoming the norm. The market’s strength in value is indicative of shifting buyer preferences toward premium assets that offer longer-term yield potential and strategic advantages in prime locations.
Despite the buoyant value, the number of commercial property sales showed a slight decrease on an annual basis, slipping by 1 percent to 2,883 deals from 2,915 in Q2 2024. This dynamic indicates a market where activity is increasingly defined by the quality and price point of assets rather than sheer transaction volume, with participants favoring larger, more valuable opportunities that can contribute to higher overall portfolio quality and stronger income streams. The data reveals a nuanced picture: while total deal flow contracted marginally, the market’s ability to drive higher-value outcomes demonstrates investor willingness to allocate capital to assets with premium positioning and strategic significance.
When viewed on a quarterly basis, the picture becomes even more telling. Quarter-on-quarter, the value of transactions rose by 6 percent compared to the first quarter of 2025, which registered a total of 29.25 billion dirhams. This sequential growth underscores a steady acceleration in market activity as buyers respond to shifting supply dynamics, improving liquidity conditions, and a renewed appetite for premium-grade commercial assets. In contrast, the transaction volume declined by 14 percent quarter-on-quarter, falling from 3,350 sales in Q1 to 2,883 in Q2. This juxtaposition—rising value alongside a falling number of deals—strongly suggests a market that is increasingly dominated by high-value transactions and larger assets, possibly concentrated in flagship locations with strong fundamentals, resilient rental markets, and long-term capital appreciation prospects.
Taken together, the Q2 2025 data portray a market in clear transition toward high-value sales, suggesting a maturing stage in which investor confidence remains solid and buyers are prioritizing asset quality and strategic fit. The overall trend speaks to a Dubai real estate market that is evolving beyond volume-driven activity toward value-driven transactions, with buyers seeking durable, premium properties in locations that promise robust economic fundamentals, access to talent, infrastructure, and global business connectivity. The combination of rising transaction values and more selective deal flow paints a picture of a market that is both confident and discerning, with investors placing a premium on assets that can deliver durable performance in a dynamic macroeconomic landscape.
Office market performance: strong growth with nuanced quarterly shifts
Within Dubai’s commercial real estate sector, the office market in Q2 2025 emerged as a standout performer, reinforcing Dubai’s status as a premier global destination for office space. Total office sales reached 2.62 billion dirhams during the quarter, representing an extraordinary year-on-year increase of 93 percent from 1.36 billion dirhams in Q2 2024. This dramatic uplift underscores sustained demand for office spaces driven by business expansion, growing foreign investment, and a resilient economy recovering and modernizing in the wake of broader post-pandemic normalization. The surge in office market value is a clear reflection of the market’s appetite for premium, well-located, and modern workspace solutions that meet the needs of multinational corporations, regional headquarters, domestic firms expanding their footprints, and a diverse mix of tenants seeking long-term occupancy.
In tandem with the value surge, the number of office units sold also climbed significantly, reaching 965 transactions in Q2 2025, a 26 percent increase from 764 units in Q2 2024. The simultaneous growth in both value and volume signals a healthy, active office market underpinned by investor and tenant confidence, with demand expanding across a broad spectrum of office product—from prime-grade towers in established business districts to mid-tier offerings that provide competitive pricing and flexible terms.
However, when examining quarter-on-quarter performance, a more nuanced picture emerges. Office market value contracted by 5 percent from 2.77 billion dirhams in Q1 2025 to 2.62 billion in Q2 2025, indicating a softening in pricing for some segments or a normalization after a period of elevated pricing. Despite this value dip, transaction volume rose modestly by 3 percent, increasing from 933 deals in Q1 to 965 deals in Q2. This dichotomy suggests a market dynamics shift toward a larger number of mid-tier office deals as buyers adjust pricing expectations and buyers’ due diligence processes align with a broader supply of mid-range properties. The combination of a robust year-on-year expansion and steady quarterly activity reveals resilience and ongoing appeal in the office segment, even as pricing and deal composition undergo a recalibration in response to market realities.
The office market’s ongoing strength is further evidenced by the concentration of activity in a handful of core districts that have historically driven Dubai’s office economy. As demand concentrates in established hubs with superior infrastructure, connectivity, and amenity ecosystems, investors and tenants continue to favor locations capable of supporting international business operations, cross-border collaboration, and high-caliber work environments. This trend aligns with a broader strategic shift toward premium office space, where developers and landlords compete to deliver differentiated product offerings that combine modern design, sustainable features, and flexible leasing models to attract a diversified tenant mix.
In sum, the office market in Q2 2025 demonstrates resilience and growth, anchored by a surge in high-value deals and a healthy uptick in activity levels. While there was a slight quarterly dip in total value, the ongoing expansion in transaction volume, coupled with strong year-on-year gains, highlights Dubai’s consistent ability to attract and retain demand for premium and mid-market office space. The market remains characterized by investor confidence, a disciplined approach to pricing and asset quality, and a clear preference for workspace that supports productivity, collaboration, and long-term business objectives.
Top office locations: Business Bay leads the way
Office transactions in Dubai during Q2 2025 were heavily concentrated in a select group of core business districts, with the top five locations accounting for nearly 90 percent of all office sales. Business Bay led the pack, showcasing its enduring appeal as Dubai’s premier commercial hub. In Q2 2025, Business Bay recorded 356 transactions, representing 36.9 percent of total office sales. The district’s magnetic appeal stems from its strategic location, modern office infrastructure, and proximity to key transportation corridors and amenities that attract both local and international investors seeking a high-visibility and high-quality business address.
Close on the heels of Business Bay was Jumeirah Lake Towers (JLT), which posted 312 transactions, accounting for 32.3 percent of the total. JLT’s enduring popularity can be attributed to its accessibility, tenant-friendly layout, and a broad spectrum of office sizes that accommodate startups, SMEs, and larger established firms alike. The district’s continued performance underscores the demand for flexible office footprints that support evolving workspace requirements in an increasingly hybrid and multi-tenant environment.
Motor City ranked third with 86 transactions, capturing 8.9 percent of the market. Its rise signals growing demand for suburban office options that offer competitive pricing, easier commutes for employees, and space configurations suitable for growing companies seeking value without sacrificing access to core economic corridors.
Barsha Heights (Tecom) followed in fourth place with 72 sales, representing 7.5 percent of the total. Its strong performance is underpinned by proximity to major transport links, a diversified amenity ecosystem, and a mix of affordable to mid-range office options that appeal to a broad clientele, including startups and established firms seeking cost-effective, well-connected environments.
Dubai Silicon Oasis rounded out the top five, with 36 transactions (3.7 percent). The free zone’s focus on technology and innovation continues to attract startups and technology firms seeking flexible workspace, modern facilities, and a supportive ecosystem that fosters collaboration and growth.
These leading districts collectively dominate Dubai’s office market, illustrating a pronounced preference among buyers and tenants for locations with established infrastructure, accessibility to talent pools, and the leverage to attract and retain premium workforces. The concentration of activity in these hubs highlights the ongoing premiumization of Dubai’s office market, where locational advantages, brand visibility, and the ability to offer high-quality, well-located space drive transaction activity and investment flows.
Upcoming supply and off-plan projects: signalling future growth
Looking forward, Dubai’s office market is positioned to benefit from a substantial influx of new supply, with an estimated 680,000 square meters of new office space expected to be delivered by 2027. This anticipated supply increase will likely reinforce the market’s ability to accommodate rising demand from multinational corporations, regional branches, and local firms seeking modern, efficient work environments. The upcoming developments will be concentrated in key districts that have shown strong demand in recent quarters, including Business Bay, Motor City, Majan, and Dubailand. These areas have witnessed rising demand in recent periods, driven by investors’ preference for well-connected locations with robust infrastructure and favorable business ecosystems.
The off-plan segment is also gaining momentum, signaling a pipeline of future supply that could shape the market trajectory in the coming years. In Q1 2025, off-plan transactions reached 800 million dirhams (approximately 218 million USD), and this figure is anticipated to rise as new projects enter the market. Off-plan sales can offer attractive price points and investment upside, while also introducing a layer of risk that buyers and developers manage through careful due diligence, pricing strategy, and planned delivery timelines. The market’s appetite for off-plan indicates a forward-looking investor base that is willing to engage with early-stage projects to secure premium positions in upcoming developments.
One standout project in the pipeline is Omniyat’s Lumena. This luxury Grade A office building is designed to set new benchmarks for premium workspace in Dubai. Lumena will feature 91 office units spanning 582,000 square feet, and will offer amenities designed to attract high-caliber tenants seeking cutting-edge work environments. Among the notable facilities are the region’s first Sky Theatre, a wellness suite, a private members’ club, and 19 high-speed elevators to move occupants efficiently across the building. Lumena’s emphasis on premium experiences and high-end amenities positions it as a beacon for luxury tenants looking for a distinctive, world-class workspace. Its anticipated arrival underscores the market’s confidence in attracting sophisticated occupiers that value prestige, service quality, and operational excellence in a flagship location.
These upcoming supply plans and off-plan projects reflect Dubai’s ongoing evolution as a mature real estate market that is continually replenishing its stock with modern, strategically located properties. The combination of new supply, a pipeline of off-plan developments, and high-profile projects like Lumena suggests a future in which Dubai’s office market remains resilient, diversified, and capable of sustaining growth as investor appetite for premium office space persists. The market’s ability to absorb new supply while maintaining quality standards, delivering advanced infrastructure, and offering compelling value propositions to tenants will be critical in shaping the next phase of Dubai’s commercial real estate story.
Implications for developers, investors, and tenants
- Developers can anticipate sustained demand for premium assets in prime districts, with a particular emphasis on modern design, flexible layouts, and connectivity to transport networks.
- Investors are likely to prioritize assets that balance current cash flow with long-term appreciation potential, focusing on properties in established hubs that offer strong rental yields and occupancy stability.
- Tenants will benefit from a broader supply of high-quality options, including flexible leasing structures, enhanced amenities, and technology-enabled work environments that support productivity and collaboration.
Overall, Dubai’s office market is advancing toward a high-value, high-quality trajectory, supported by a steady pipeline of new supply and a growing appetite for premium spaces that align with the needs of international and regional businesses. The combination of strong demand dynamics, district dominance, and planned future supply suggests a market well positioned to sustain growth and deepen its maturity in the coming years.
Dubai’s market strength and maturity: a durable growth path
Dubai’s commercial real estate market in Q2 2025 delivered solid results, characterized by record high transaction values alongside a measured dip in deal volume. The surge in high-value commercial property sales, coupled with robust growth in the office segment, points to a healthy, evolving market that is transitioning from a phase of rapid expansion to one of sustained maturity and sophistication. The concentration of activity in key business districts reaffirms Dubai’s stature as a major global commercial hub, attracting a diverse mix of investors and tenants seeking premium space and modern infrastructure.
Significantly, the market’s strength is reinforced by an orderly balance between supply and demand. The projected influx of new office space—680,000 square meters by 2027—along with the continued momentum in off-plan activity, suggests a carefully calibrated growth trajectory. This trajectory is likely to lead to improved liquidity, greater pricing discipline, and enhanced asset quality, all of which contribute to a more resilient market framework. The pipeline of flagship projects and premium non-residential developments demonstrates a strategic commitment to elevating Dubai’s competitive position on the world stage.
The concentration of office transactions in dominant districts—Business Bay, JLT, Motor City, Barsha Heights (Tecom), and Dubai Silicon Oasis—highlights a continued preference for mature, well-connected locations with robust ecosystems. These districts offer a combination of infrastructure, accessibility, and amenity richness that appeals to both occupiers and investors, supporting strong rental performance and capital value retention. The market’s ability to attract premium tenants and facilitate high-caliber occupier demand further underscores its level of market sophistication and global appeal.
Buying behavior in Q2 2025 suggests a strategic shift toward premiumization. Investors appear to be prioritizing asset quality, long-term yield, and location resilience in the face of evolving economic conditions. This shift aligns with a broader pattern seen in mature markets where investors increasingly favor assets with strong fundamental drivers—location, infrastructure, governance, and a clear path to value creation—over short-term, high-volume transactions. The outcome is a more disciplined market environment where pricing, due diligence, and asset management play larger roles in determining success.
From a broader perspective, Dubai’s market dynamics point to a cycle of sustained expansion supported by macroeconomic fundamentals, regulatory clarity, and a business-friendly ecosystem. The city’s ability to attract foreign investment, support global corporate footprints, and deliver modern, flexible workspaces remains a core driver of its real estate trajectory. The ongoing emphasis on premium space, coupled with a growing supply of well-located, technologically advanced properties, is likely to maintain investor interest and attract new entrants to Dubai’s commercial property market.
As investor confidence remains elevated and demand for premium office space grows, Dubai’s commercial real estate sector appears well-positioned for continued expansion and increased sophistication. The market’s evolution toward higher-value transactions, its dominant district performance, and a steady stream of new developments and off-plan opportunities collectively indicate a durable growth path. Stakeholders—including developers, lenders, asset managers, brokers, and tenants—stand to benefit from a market that is becoming more resilient, more transparent, and more capable of delivering long-term returns in a rapidly changing global landscape.
Conclusion
Dubai’s Q2 2025 commercial real estate results reveal a market that is increasingly confident, value-driven, and resilient. The total value of commercial sales reached 31.03 billion dirhams, up 50 percent year-over-year, even as overall deal volume declined modestly to 2,883 transactions. The strong value development signals an investor preference for premium assets and prime locations, pointing to a maturing market that prioritizes quality and potential for durable returns over sheer transactional volume. The quarter also highlighted the office market’s strength, with office sales leaping 93 percent year-on-year to 2.62 billion dirhams and 965 office transactions, even as quarterly value softened slightly and volumes maintained momentum, underscoring a healthy balance between growth and pricing discipline.
Key districts—Business Bay, JLT, Motor City, Barsha Heights, and Dubai Silicon Oasis—continue to dominate office sales, illustrating a clear preference among buyers for established hubs with mature infrastructure and connectivity. These location dynamics reinforce Dubai’s standing as a leading regional and global business center, attracting a diverse mix of occupiers and investors seeking premium space and strategic advantages. Looking ahead, a substantial supply pipeline—approximately 680,000 square meters of new office space by 2027—alongside a growing off-plan market and notable developments like Lumena, signals ongoing momentum for Dubai’s office market and commercial real estate at large. The off-plan segment’s growth and the introduction of flagship projects will likely sustain the market’s expansion, attract premium tenants, and contribute to continued sophistication in asset quality, pricing, and governance.
In this context, Dubai’s commercial real estate sector appears poised for continued expansion and maturation. Investor confidence remains high, demand for premium office space grows, and the city’s major districts continue to anchor transaction activity. While market dynamics may evolve with shifts in pricing and deal structure, the overall trajectory points toward a durable growth path underpinned by strategic supply, premium asset demand, and a favorable investment climate. As the market adapts to these conditions, Dubai is well-positioned to sustain its role as a leading hub for commercial property investment in the region, driven by a combination of structural fundamentals, ongoing development, and a resilient, diversified occupier base.
