Office sales spur Dubai's commercial realty to Dh31b in Q2
This substantial growth, up from Dh20.75 billion in Q2 2024, reflects the market's strong momentum amid rising demand for Grade A office space, premium warehouse facilities, and off-plan investments, says CRC Property's latest market report.
Leading the surge was the office segment, where sales skyrocketed by 93 per cent year-on-year to Dh2.62 billion. The volume of office transactions also rose by 26 per cent, highlighting a growing appetite among investors and end-users for ownership opportunities in Dubai's business hubs. Business Bay and Jumeirah Lake Towers (JLT) continued to dominate activity, while emerging commercial zones such as Barsha Heights and Motor City gained traction, offering competitive pricing and modern infrastructure.
Behnam Bargh, managing director at CRC, said Q2 2025 represents a defining moment for both CRC and Dubai's commercial landscape. 'We recorded our most successful quarter to date, with a 75 per cent increase in sales deals. This performance is a direct result of our team's client-first approach and the continued confidence of investors in Dubai's economic story.'
One notable trend is the growing share of off-plan office transactions. Developers such as Omniyat have launched landmark projects like Lumena in Business Bay — premium commercial towers that combine cutting-edge architecture with flexible floor plans and high-end amenities. This shift towards modern, future-ready workspaces is reshaping the preferences of institutional investors and long-term occupiers.
'The success of off-plan reflects a maturing buyer mindset — stakeholders are committing to spaces that meet the evolving needs of tomorrow's workforce, not just today's,' Bargh said.
Property market analysts believe that as global investors recalibrate their portfolios for post-pandemic realities, Dubai's commercial property market is emerging as a safe, growth-oriented asset class — powered by innovation, transparency, and strategic vision.
Dubai's industrial and logistics sectors also displayed strong growth, driven by high demand and constrained supply. Average warehouse sale prices more than doubled year-on-year, reaching Dh22.2 million, largely due to intense activity in prime industrial locations such as Dubai Industrial City, Dubai Investments Park (DIP), and Jebel Ali Free Zone (JAFZA).
The sector saw an increase in larger transaction sizes, signaling consolidation and expansion among logistics and distribution players seeking strategic, scalable assets. These trends underscore Dubai's growing role as a regional logistics and supply chain hub, particularly as e-commerce, last-mile delivery, and regional warehousing requirements accelerate.
On the leasing side, the market maintained robust momentum, with leasing transactions increasing by 30 per cent compared to the previous quarter. The average office leasing value rose to Dh480,768 — a 95 per cent surge year-on-year — as businesses competed for fitted, well-located, and high-spec workspaces.
Demand for larger units is being driven by new business setups, regional expansions, and growing confidence across sectors such as finance, technology, consulting, and healthcare. According to CBRE, both Dubai and Abu Dhabi are experiencing sustained rental growth and high occupancy rates due to limited new supply and a steady influx of international firms setting up regional headquarters.
JLL's recent analysis echoes this sentiment, pointing to high investor interest in strategic commercial assets such as last-mile logistics hubs, data centres, and mixed-use office-retail complexes. The ability to convert qualified non-freehold properties is also expected to unlock further investment potential across multiple submarkets.
With the UAE's diversified economy continuing to attract foreign capital, the commercial real estate sector stands poised for further expansion in the second half of 2025. Market analysts believe Dubai's continued focus on infrastructure upgrades, business-friendly reforms, and sustainable development will support a healthy demand pipeline and long-term value creation.
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