Dubai’s commercial property market closed 2025 with its strongest performance on record, reinforcing the emirate’s position as one of the world’s most compelling destinations for commercial real estate investment.
According to CRC Property’s FY 2025 Commercial Property Market Report, total commercial sales value reached AED 136 billion, representing a 41% year-on-year increase, while transaction volumes rose 14% to 13,377 deals; the highest annual total ever recorded.
While activity remained robust across the year, momentum intensified sharply in the final quarter. Q4 alone accounted for approximately AED 45 billion in sales value, following a 48% quarter-on-quarter surge, while transaction volumes grew at a more measured pace. This widening gap between value and volume highlights a defining theme of 2025: the growing dominance of higher-ticket transactions and institutional-grade assets.
Secondary Market Dominance, With Off-Plan Momentum Building
Dubai’s commercial market in 2025 was overwhelmingly driven by secondary sales. Ready assets accounted for nearly three-quarters of all transactions and an even more pronounced share of total value. In absolute terms, secondary sales reached AED 126 billion, underscoring investor preference for stabilised, income-generating stock.
Off-plan transaction volumes expanded significantly year-on-year, accounting for 27% of total deals, while sales value recorded even sharper growth, reflecting rising confidence in new commercial launches and an increase in higher-value off-plan deals. While secondary assets remain the market’s anchor, this acceleration signals a more balanced pipeline emerging for future years.
Institutional Capital Targets Strategic Commercial Land
One of the most notable shifts in 2025 was the sharpened focus on commercial land. Offices, land and retail were the primary drivers of growth, supported by strong occupier demand and constrained Grade A supply. Strategic commercial plots are increasingly being viewed as a core institutional asset class, particularly as competition intensifies for well-located sites.
This trend is reinforced by the entry and expansion of major global asset managers, including BlackRock, Brookfield, KKR, Apollo, Carlyle, Citadel and AXA Investment Managers, signalling growing long-term conviction in Dubai’s commercial fundamentals and its role as a regional headquarters hub.
“With Grade A supply constrained and occupier demand rising, competition for prime commercial land is intensifying,” Behnam Bargh, Managing Director of CRC Property stated. “Institutional capital is positioning early, recognising that land-led strategies will underpin Dubai’s next phase of commercial development.”
Office Sales Lead the Upswing
The office sector was a standout performer in 2025. Transaction volumes climbed more than 50% year-on-year, while total sales value more than doubled to AED 13 billion. The outsized increase in value relative to volumes highlights rising average deal sizes and firmer pricing for quality stock.
Momentum strengthened further in Q4, supported by large-scale strata transactions and year-end corporate acquisitions. Demand continues to be fuelled by Dubai’s business expansion cycle, including new company formations, multinational firms scaling regional headquarters and sustained growth across finance, professional services, technology and trade-related sectors.
Prices Hit New Highs as Buyer Demand Accelerates
Secondary office sale prices reached an all-time high in 2025, climbing to AED 1,759 per square foot. Values have now more than doubled from post-pandemic lows, driven by tight availability of ready stock and strong competition for Grade A strata offices in prime business districts.
CRC Property’s internal demand indicators point to accelerating buyer appetite throughout the year. Buyer enquiries rose sharply year-on-year and continued to build into Q4, signalling sustained confidence rather than a late-cycle slowdown.
On the leasing side, flexibility remained a defining feature of market behaviour. Four-cheque payment structures dominated leasing transactions, highlighting tenants’ focus on cashflow management and landlords’ willingness to accommodate flexible terms to secure occupiers.
