Dubai’s commercial property market enjoyed an exceptional first half of 2025, witnessing an 84% year-on-year (YoY) surge in sales value, reaching an impressive AED 5.4 billion across approximately 1,900 deals. The figure marks the strongest half-year performance since 2014.
Market Highlights: Impressive Growth Across the Board
- Transaction volumes jumped 22% YoY, signaling robust demand, particularly in both prime commercial spaces and logistics segments.
- Commercial sales prices climbed 22.2% YoY, bringing the average to AED 1,748 per square foot.
- Rental rates surged 26.4% on average, with prime locations such as DIFC and Downtown Dubai seeing hikes of nearly 35%.
Supply & Inventory: Meeting Demand With New Stock
- 34,000 sqm of new commercial space came online between January and June 2025.
- 110,000 sqm more is projected by year-end, followed by 340,000 sqm in 2026, raising the total gross leasable area (GLA) to an estimated 10.85 million sqm by 2028.
Investor Appetite: FDI & Business Activity on the Rise
- Dubai welcomed over 500 new foreign direct investment (FDI) projects, generating more than AED 11 billion in capital inflows during H1.
- The Dubai International Financial Centre (DIFC) recorded 1,080 new business registries, a 32% increase YoY.
Emerging Trends: Off-Plan Growth & Preferred Locations
- While ready commercial units dominated with 85% of transactions, off-plan sales rose nearly 180% YoY and 90% compared to H2 2024 driven by demand for modern, ESG-aligned developments.
- Business Bay remained the most active sales hub (672 transactions), followed by Jumeirah Lakes Towers (534), Motor City (216), Barsha Heights (160), and Dubai Silicon Oasis (77).
Key Takeaways
- Investor confidence is soaring across Dubai’s commercial property sector, with FDI inflows and business registrations highlighting economic momentum.
- Price and rental growth reflect the premium placed on quality, location, and ESG credentials particularly in newer, prime-grade spaces.
- Supply constraints persist, but the pipeline looks healthy through 2028, offering some relief though most new inventory will arrive after 2025.
- The off-plan surge signals growing investor interest in future-ready developments, aligning with evolving workspace preferences.
- Strategic zones like Business Bay and JLT continue to lead in activity, but expanding stock is likely to increase liquidity in emerging areas.
