Dubai commercial property deals nearly triple to AED 15.8 bn as prices surge 85%

Dubai’s office real estate market emerged as the standout performer in the emirate’s commercial property sector in the first half of 2026, with transaction value nearly tripling year on year to AED 15.81 billion. The sharp rise came alongside a 38% increase in transaction volumes, highlighting sustained demand for quality office assets despite regional geopolitical tensions.

According to an analysis of transaction data by ANAROCK Middle East, Dubai recorded 2,571 office transactions in H1 2026, compared with 1,860 deals during the same period last year. In value terms, office transactions jumped 199.3% from AED 5.28 billion in H1 2025.

The surge was accompanied by a steep increase in office property prices. Average office prices climbed 85% year on year to AED 3,202 per square foot, reflecting stronger investor appetite for premium commercial assets and limited availability of Grade A office space in key business districts and free zones.

“Office transaction volumes rose 38% year-on-year via 2,571 deals, and transaction value surged nearly 200% to AED 15.81 billion from AED 5.28 billion in H1 2025. Average office prices climbed 85% year-on-year to AED 3,202 per square foot,” said Anuj Kejriwal, CEO – Retail and CEO – Europe, Middle East and Africa, ANAROCK Group.

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Demand for Grade A offices goes up

The performance indicates that investors are increasingly willing to pay a premium for high-quality, income-generating office properties. Tight supply of Grade A space in established business districts and free zones has supported both transaction values and prices.

The strength of the office market also came against a challenging regional backdrop. Dubai’s wider commercial real estate market recorded transactions worth AED 65.23 billion in H1 2026, up 8.5% from AED 60.14 billion in H1 2025. Overall transaction volumes increased nearly 13% to 6,487 deals from 5,754.

The first quarter was particularly strong, with Dubai’s commercial property transaction value reaching an estimated AED 40.75 billion, more than 40% higher year on year. Regional tensions did little to derail activity, reinforcing Dubai’s appeal as a destination for regional and global capital during periods of uncertainty.

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Investors favour income-generating assets

The office boom coincided with a broader shift in investor preferences. While land remained the largest commercial property segment by transaction value, land deals fell 29.3% year on year to 941 transactions in H1 2026, while transaction value declined 9.3% to AED 33.19 billion.

In contrast, investors increasingly favoured established assets capable of generating rental income. Retail property transactions also strengthened, with volumes rising 56.2% to 853 deals and transaction value jumping 174.3% to AED 3.71 billion.

Prices remain firm despite Q2 moderation

Activity moderated in the second quarter after the exceptional Q1 performance. Commercial transaction volumes fell around 22% sequentially, while transaction value declined nearly 40%. However, average commercial property prices still rose 34% year on year to AED 3,186 per square foot.

The trend suggests that the Q2 slowdown was driven more by the high base of large land transactions than by weakening demand for prime assets. ANAROCK expects Dubai’s commercial real estate market to remain supported by tight Grade A office supply, rising rents and steady occupier demand through the rest of 2026.

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