Office Sector Drives Growth in Dubai’s Commercial Real Estate Market

Dubai’s commercial real estate market remained resilient during the first half of 2026 despite regional geopolitical tensions, with the office sector emerging as the main driver of growth.

The total value of commercial real estate transactions in Dubai increased by 8.5% year-on-year to AED 65.23 billion in the first half of 2026, according to an analysis by ANAROCK Middle East.

The total number of transactions also increased by around 13% year-on-year, reaching 6,487 deals compared with 5,754 transactions in the first half of 2025. This reflects continued demand for commercial assets across the emirate.

The office sector recorded particularly strong growth, with transaction values rising by nearly 200% to AED 15.81 billion in the first half of 2026, compared with AED 5.28 billion during the same period last year. The number of office transactions also increased by 38.2% to 2,571 deals.

Office prices rose by 85% year-on-year to AED 3,202 per square foot, reflecting strong demand for Grade A office space amid limited supply in Dubai’s main business districts and free zones.

Growing Demand

Anuj Kejriwal, CEO of Retail and CEO for the EMEA region at ANAROCK Group, said the sharp increase in office transactions reflects growing demand for premium commercial space in Dubai.

The retail real estate sector also recorded strong growth during the period. Retail transaction volumes increased by 56.2% year-on-year to 853 deals.

The total value of retail transactions jumped by 174.3% to AED 3.71 billion, compared with AED 1.35 billion in the first half of 2025. Average retail property prices also increased by 54% year-on-year to AED 3,486 per square foot.

ANAROCK attributed this growth to stronger consumer and business confidence, as well as increasing investor interest in well-located commercial assets.

Shift Toward Income-Generating Assets

Investors are increasingly shifting their focus from land investments toward income-generating commercial properties.

Land transactions declined during the first half of 2026, indicating a change in investor preferences.

The number of land transactions fell by 29.3% year-on-year to 941 deals, while the total transaction value declined by 9.3% to AED 33.19 billion, compared with AED 36.60 billion in the first half of 2025.

This trend suggests that investors are increasingly moving away from land and toward income-generating commercial assets such as offices and retail properties.

Other commercial real estate segments, including apartments, hotel rooms, buildings and industrial assets, recorded a 5.3% increase in transaction volumes to 2,053 deals. However, the total value of these transactions declined by 17.9% to AED 11.33 billion.

Positive Outlook

The outlook for Dubai’s commercial real estate market remains positive.

ANAROCK expects the market to maintain its upward momentum during the remainder of 2026, supported by Dubai’s tax advantages, freehold ownership opportunities for foreign investors and the continued expansion of the Golden Visa programme.

Kejriwal said transaction volumes may continue to fluctuate in the short term depending on regional developments. However, the limited supply of Grade A offices, rising rental rates and stable tenant demand are expected to support the market’s underlying growth.

Data from the first half of the year also highlights a noticeable shift in investor preferences. While land continues to represent a significant share of total commercial transaction value, the strong increase in office and retail activity points to growing demand for assets that can generate income, particularly in prime locations.