Prime Highlights-
- Dubai’s commercial property market grew strongly in the first quarter of 2026, supported by rising demand for high-value assets.
- The market is shifting toward quality-based investment, with buyers focusing more on premium properties than transaction volume.
Key Facts-
- Total commercial property sales reached AED 37.9 billion ($10.32 billion), a 30% rise year-on-year, even as total deals fell to 3,619 units.
- Office, retail, and off-plan segments showed strong growth, with office sales at AED 8.2 billion and retail sales rising 162% year-on-year.
Background-
Dubai’s commercial property market showed strong growth in the first quarter of 2026. Total sales reached AED 37.9 billion ($10.32 billion), rising 30% compared to the same period last year.
A report by CRC (Commercial Real Estate Consultants) said the market is shifting toward quality-based investment activity. Buyers now prefer premium properties instead of focusing on higher transaction numbers. Total deals stood at 3,619 units, down 3% year-on-year.
The office segment led market performance during the quarter. Sales value jumped 73% quarter-on-quarter to AED 8.2 billion. Office prices in the secondary market crossed AED 2,000 per sq ft for the first time. Areas such as Business Bay, Al Sufouh, and JLT recorded strong demand.
Retail properties also saw strong growth. Sales values rose by 162% year-on-year, driven by higher demand for nearby shops and retail spaces. Areas such as Jumeirah Village Circle and Motor City saw strong activity.
Off-plan commercial deals expanded sharply. Transaction values increased by 158% and now form a major share of total market activity. Warehouse and logistics assets also saw rising demand due to growing interest in industrial space.
The report also noted a change in leasing patterns. Tenants now focus more on managing cash flow, while multi-cheque payments remain common. CRC said Dubai’s commercial property market remains strong and continues to attract investors. It added that economic growth and diversification support long-term stability and expansion.
