Commercial property sales in Dubai are increasing by almost 80% as the market services the earthquake
Dubai’s real estate sector has recorded the biggest price increase in 2025, with industry analysts predicting the emergence of a two-phase office market as new Grade A developments begin to reset prices and tenant demand later in the decade.
According to market data, the amount of commercial property sales increased by 77.9 percent year-on-year in the first 11 months of 2025, reaching AED15.5 billion, while purchase prices increased by 35.1 percent to 5,364 deals. The growth comes amid broader strength in Dubai’s housing market, which has already posted record results in the residential sector this year.
Despite the strong performance, market participants say that Dubai’s office sector is approaching a period of structural change. Firas Al Msaddi, CEO of fäm Properties, said the commercial market is lagging behind the residential sector in adopting modern design and construction standards.
“Since 2008, Dubai has never seen a new generation of offices,” said Al Msaddi.
“On the contrary, the residential market went through major changes, new design language, new architecture, new standards of comfort, and new building codes.”
He added that the first wave of next-generation Grade A offices is expected to be delivered from 2028 onwards, marking a turning point in the sector.
“That will be the moment of truth, as we see how high-end office space works where tenants finally have modern, functional, architectural options,” he said.
“The gap between old and new will widen, and the entire commercial sector will also gain in quality, creating a two-tier office market, with older buildings under pressure as new Grade A buildings command prices.”
Commercial sales growth in 2025
Office supplies accounted for the largest share of commercial activity during the period, with AED11.2 billion in sales across 4,012 activities. Retail units accounted for AED3.8 billion in sales from 1,321 deals, while smaller amounts were recorded in showrooms, warehouses, workshops and specialized buildings such as clinics and gyms.
Al Msaddi highlighted the Vision Tower in Business Bay as an example of the continued demand for high-quality office space. “It always does very well in the market because it attracts real and stable companies,” he said.
“A small unit is half a floor, which filters important companies, and the performance of this building tells you how strong the demand for Grade A is.”
The increase in transactions comes alongside a record year for Dubai’s residential sector, which saw 197,263 transactions worth AED624.1 billion, surpassing the results of a full year from 2024 with a month to go.
Market observers say continued economic growth, increased business activity and a limited supply of modern office space are supporting near-term demand, while the arrival of new developments later in the decade is expected to redefine how commercial property is priced across the emirate.
