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Dubai’s Commercial Property Market Sees 31% Growth in Q3 2025

7 months ago
1 min read
Dubai commercial property

Dubai’s commercial property sector continues its upward momentum, with total sales reaching AED30.38 billion (US$8.27 billion) in the third quarter of 2025 — a robust 31% increase compared to the same period last year, according to a new report by CRC (Commercial Real Estate Consultants).

The surge was led by Business Bay and Jumeirah Lakes Towers (JLT), which together accounted for 605 transactions out of 1,153 office deals recorded citywide. Business Bay alone saw 328 office sales worth AED3.1 billion, reflecting a 93% year-on-year value increase and an 18% rise from the previous quarter.

CRC’s Managing Director Behnam Bargh attributed the strong performance to a combination of rising investor demand, corporate relocations, and premium office projects entering the market. “Dubai’s commercial real estate remained strong in Q3 2025, with transaction volumes up 19% quarter-on-quarter and 22% year-on-year,” he said. “Business Bay and JLT remain the top-performing districts, supported by new off-plan projects redefining premium workspaces.”

Office Market Fuels Investor Confidence

The office segment remains a major growth driver within Dubai’s commercial property landscape. CRC’s data showed AED3.1 billion in office sales across 1,153 transactions, with volume growth up 45% year-on-year.

Yogesh Yerikireddi, JLT Area Manager at CRC Property, noted that vacancy rates across Grade A and ESG-compliant towers have reached historic lows. “With limited premium supply and record demand from expanding companies, fitted and vacant commercial offices are attracting unprecedented investor interest,” he explained.

The market’s sustained strength is also being fueled by Dubai’s appeal as a regional business hub, favorable corporate tax structures, and ongoing efforts to position the emirate as a global headquarters destination.

Off-Plan and Retail Segments Also on the Rise

Off-plan activity has continued to expand, totaling AED2.4 billion (US$650 million) across 1,101 transactions in Q3 2025. Office and retail developments made up AED1.86 billion (US$510 million) of this total, showing consistent appetite for new commercial projects.

Looking ahead, Dubai expects nearly 680,000 square meters of new office supply by 2027, with Business Bay and Motor City among the key beneficiaries.

Meanwhile, the retail real estate segment recorded a strong rebound in Q3, with AED1.15 billion (US$310 million) in transactions — up 95% quarter-on-quarter and 55% year-on-year. CRC attributed this growth to renewed investor confidence, increased consumer spending, and a healthy tourism-driven retail environment.

Outlook: Sustained Growth Through 2027

Analysts predict Dubai’s commercial property market will maintain its growth trajectory through 2027, driven by expanding demand for high-quality, sustainable, and flexible office spaces. With corporate relocations accelerating and off-plan investments surging, the city continues to strengthen its position as one of the world’s most dynamic business real estate markets.

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