Dubai’s commercial property sector showcased impressive resilience and growth in the second quarter of 2025, bolstered by a sharp rise in transaction values and an increasing shift towards high-end properties. Despite a minor dip in transaction volumes, the total value of commercial sales surged highlighting robust investor confidence and a maturing marketplace. This continued momentum positions Dubai as a key destination for commercial property investment in the region.

 

Transaction Value Soars to DHS. 31.03 Billion

According to CRC Property’s Q2 2025 Commercial Property Market Report, the total value of commercial real estate transactions in Dubai hit DHS. 31.03 billion, an impressive 50% jump from DHS. 20.75 billion recorded during the same period last year. This surge underscores the growing appetite for commercial assets and reaffirms trust in Dubai’s property landscape.

However, this value-driven growth was accompanied by a slight 1% drop in deal volume, with 2,883 transactions compared to 2,915 in Q2 2024. This trend points towards fewer, yet significantly higher-value transactions, indicating a focus on premium assets and larger-scale deals.

Quarter-on-quarter, transaction value rose by 6% from Q1 2025’s DHS. 29.25 billion, even as the number of deals declined by 14%. This reinforces the notion that the market is evolving toward high-ticket investments in top-tier commercial properties.

Office Sector Shows Exceptional Year-on-Year Growth

The office segment remained a top performer in Q2 2025, with total sales reaching DHS. 2.62 billion, up a striking 93% from DHS. 1.36 billion in Q2 2024. This notable growth reflects a rebound in business activity, increased international investment, and the continued economic recovery post-COVID.

The number of office units sold also climbed to 965, marking a 26% increase from 764 in the previous year. This simultaneous rise in both value and volume suggests a thriving and well-balanced office market.

On a quarterly basis, however, there was a 5% dip in transaction value from DHS. 2.77 billion in Q1 2025. Still, sales volume edged up by 3%, from 933 to 965 transactions indicating a shift toward more mid-range office properties and a potential recalibration in pricing dynamics.

 

Business Bay Leads as the Top Office Investment Hub

Dubai’s office market remains highly centralized, with nearly 90% of transactions concentrated in five key business districts. Business Bay continued its dominance, accounting for 36.9% of total office sales with 356 transactions. Its strategic location and state-of-the-art infrastructure keep it a top pick for investors and businesses alike.

Jumeirah Lake Towers (JLT) followed closely with 312 sales (32.3%), thanks to its accessibility and flexible office layouts catering to SMEs and larger firms. Motor City took third place with 86 transactions (8.9%), signaling increased interest in suburban office options that offer cost-efficiency and convenience.

Barsha Heights (Tecom) recorded 72 deals (7.5%), benefitting from its strong transport links and central location. Meanwhile, Dubai Silicon Oasis closed the top five with 36 sales (3.7%), maintaining its appeal to startups and tech firms due to its free zone advantages.

 

Future Growth Driven by New Supply and Off-Plan Projects

Looking ahead, Dubai’s office market is expected to gain further momentum with over 680,000 square metres of new office supply projected to be delivered by 2027. Upcoming developments in Business Bay, Motor City, Majan, and Dubailand are strategically aligned with growing demand.

Off-plan investments are also gaining traction. In Q1 2025 alone, off-plan commercial transactions reached Dhs 800 million ($218 million), with more growth expected as new high-end projects enter the pipeline

 

Dubai’s Commercial Market: Poised for Continued Expansion

Q2 2025 solidified Dubai’s position as a rising powerhouse in commercial real estate. While the number of transactions slightly tapered, record-breaking deal values and a surge in office investments highlight a market that’s maturing with confidence.

Core business districts continue to attract the bulk of activity, and the introduction of high-quality supply and landmark developments promises to keep Dubai on a steady path of growth. With demand for premium spaces on the rise and investor sentiment staying strong, Dubai’s commercial real estate market is well-positioned for continued evolution and long-term success.