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Dubai’s Commercial Market Q3 2025: Sustained Demand Meets Limited Supply
Dubai’s commercial real estate sector continued its steady upward trajectory in Q3 2025, marked by a strong rise in transactions and deepening investor confidence. According to our Q3 2025 Commercial Market Report, Dubai recorded 2,919 transactions worth AED 29.35 billion, reflecting a 10% increase in sales volume compared to the previous quarter, despite an 11% decline in total value.
The market’s performance underscores a pivotal trend, demand is outpacing available supply. As office, retail, and land transactions gain momentum, Dubai is entering a phase of structural maturity where scarcity, rather than speculation, is shaping prices and decision making.
Market Shows Confidence and Consistency
The total quarterly transaction volume rose from 2,649 in Q2 2025 to 2,919 in Q3 2025, marking the fifth consecutive quarter of growth in total activity. While total transaction value softened slightly from AED 32.97B in Q2 2025 to AED 29.35B, the market’s depth remains healthy, particularly when compared to AED 23.37B in Q3 2024, showing a YoY growth of 25% in overall value.
Business Bay continued to dominate, as the highest performing community with AED 3.37 billion in transaction value and 408 commercial deals, followed by Jumeirah Lakes Towers (AED 846M) and Majan (AED 1.03B).
Performance of Asset Classes
The composition of Dubai’s commercial transactions in Q3 2025 shows the city’s strategic positioning as a global business hub. Land sales made up the largest share of total value, AED 17.7 billion which accounted for 60% of all deals, while offices accounted for 40% of total transactions.
Breakdown by Asset Class
- Land: AED 17.68 billion (1,153 transactions)
- Offices: AED 3.1 billion
- Retail: AED 1.14 billion
- Hotel Rooms: AED 509 million
- Warehouses: AED 200 million
Offices saw robust demand, averaging AED 1,808 per sq.ft, while retail assets registered AED 2,510 per sq.ft, the highest rate among all commercial property types. Warehouses averaged AED 413 per sq. ft and 43% of transactions were cash, while 57% were mortgaged.
Among the most notable transactions were:
The average price of prime office space in Downtown Dubai reached AED 4,184 per sq.ft, followed by Dubai Marina (AED 3,190), Meydan Horizon (AED 2,839), and Emirates Living (AED 2,717).
While retail accounted for 15% of total transactions, the trend favored strategically located, mixed use developments catering to footfall-heavy communities rather than standalone retail strips.
Off-Plan vs. Secondary Market Dynamics
The secondary market dominated the third quarter of 2025, accounting for 69% of total commercial transactions (2,028 deals) with a combined value of AED 27.18 billion.
Meanwhile, the primary (off-plan) market contributed 31%, totaling AED 2.17 billion from 891 commercial transactions.
Average prices reflected the expected disparity between brand-new developments and existing assets:
- Primary Market: AED 3,131 per sq.ft
- Secondary Market: AED 1,528 per sq.ft
This dual-market trend signals a maturing investor mindset.
Leasing Commercial Market in Q3 2025
Leasing activity in Q3 2025 was particularly robust, driven by strong SME growth and expanding multinational occupancy. The city recorded 71,562 rental transactions, with a combined annual rent value of AED 5.27B.
Retail units led the market with 52,125 leasing contracts, followed by offices (11,353) and warehouses (3,019). The median rental rate across all commercial assets stood at AED 137 per sq.ft per annum.
Supply Outlook: Scarcity is the New Reality
Dubai’s commercial property pipeline remains constrained. As of September 2025, 7,434 units are under construction across 495 projects, predominantly comprising retail (51%) and office space (41%).
The upcoming delivery schedule shows:
- 2025: 1,000 units
- 2026: 1,600 units
- 2027: 2,023 units
- 2028: 2,192 units
Key emerging areas include Business Bay, Jumeirah Lake Towers, Arjan, Majan, and Dubai Studio City, collectively accounting for a large share of under-construction inventory.
Key Takeaways from Q3 2025
- Commercial Resilience: Transaction volumes rose 10% QoQ despite lower total value, signaling market stability.
- Land Dominance: Land accounted for 60% of total sales value, a clear reflection of continued development appetite.
- Office Strength: Office assets remain the most actively traded commercial class, averaging AED 1,808 per sq.ft.
- Secondary Market Leadership: 69% of all sales occurred in the resale market, demonstrating sustained investor confidence.
- Leasing Demand: Over 71,000 rental contracts were registered, confirming Dubai’s robust business activity.
- Tight Supply Pipeline: Only 7,434 units are currently under construction, ensuring price stability in the medium term.
