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Dubai’s Commercial Market Q4 2025 Report: Record Transactions in a Supply-Constrained Market
Dubai’s commercial real estate market in 2025 has emerged as one of the strongest performing sectors globally, supported by rising occupier demand, record transaction values, and a constrained supply environment. This Dubai Commercial Market Report Q4 2025 provides a data-driven analysis of transaction activity, pricing trends, leasing performance, asset-class breakdowns, and future supply, offering investors, developers, and occupiers a clear view of market conditions and outlook.
Demand from both occupiers and investors remained solid throughout the fourth quarter, while new supply continued to be limited. This imbalance supported strong activity levels and upward pressure on values, making Q4 one of the strongest quarters of the year.
Transaction Activity in Q4
Transaction activity reached new highs during the quarter. A total of 3,203 commercial transactions were recorded in Q4, representing a 10% increase compared to the previous quarter. More notably, total transaction value climbed to AED 43.42 billion, up 48% increase quarter-on-quarter and the highest quarterly sales value seen in 2025. This growth reflects investor confidence and increasing deployment of capital into income-generating commercial assets.
Key numbers:
● 3,203 transactions
● Transactional value AED 43.42B
● Average price per sq ft 2,217 (Office Market Dubai)
Market Share of Asset Classes
Offices continue to dominate the Dubai commercial real estate market, driven by demand for Grade A space in established business districts. A total of 1,539 office deals were completed, highlighting ongoing demand for well-located and quality workspace. Land transactions made up 21% of activity, followed by retail at 16%. Warehouses accounted for a very small share of transactions, while the remaining 14% was spread across other commercial asset types
Commercial property trends reflected the clear difference between asset pricing trends. Average office market prices stood at AED 2,217 per sq ft, while retail assets achieved higher average values of AED 2,920 per sq ft. Higher retail pricing reflects scarcity of prime retail units in strong locations.
Buyer Preferences: Mortgages
Buyer activity in Q4 2025 showed a clear preference for financed purchases. Mortgage-backed transactions accounted for 56% of total deals, while Cash purchases made up the remaining 44%. This split suggests increasing institutional participation and long-term hold strategies, supported by favourable lending conditions and continued confidence in Dubai’s long-term commercial outlook.
Prime Properties and Communities
High-value deals continue to concentrate on premium developments. The most expensive office sale reached AED 61 million for a 13,163 sq. ft unit at Enara by Omniyat in Business Bay. On the retail side, the top transaction was recorded at AED 53.83 million at Binghatti Aquarise, highlighting demand for prime retail assets.
Business Bay remains Dubai’s most active commercial district by transaction volume, recording 590 transactions with a combined value of AED 3.15 billion.
Jumeirah Lake Towers followed with 313 transactions worth AED 840 million, while Jumeirah Village Circle recorded 276 transactions valued at AED 1.80 billion. These figures highlight stable interest in mature, mixed-use communities that offer strong connectivity and established commercial ecosystems.
Average price per sq.ft for other communities were as follows:
● Palm Jumeirah: AED 10,466 price per sq ft
● Dubai Harbour: AED 10,005 price per sq ft
● Dubai Water Canal: AED 6,503 price per sq ft
Primary vs Secondary Market Performance
The secondary market led sales activity, accounting for 65% of all transactions. A total of 2,077 secondary market deals were recorded during the quarter, with a combined value of AED 39.37 billion. By comparison, the primary market saw 1,126 transactions valued at AED 4.04 billion, representing 35% of total activity.
Pricing trends continued to show a clear gap between off-plan and secondary stock. Primary market assets achieved an average price of AED 2,838 per square foot, compared to AED 2,564 per square foot in the secondary market. Investors show clear preference for completed, income-generating assets, particularly in an environment of rising prices and limited supply.
Dubai Commercial Leasing Market
Leasing activity across Dubai’s commercial market remained strong in Q4 2025, with a total of 70,595 leasing transactions recorded during the quarter. Rental levels showed steady performance, with the median annual rent reaching AED 136 per square foot, pointing to stable rental growth.
Types of Contracts:
New leases continued to drive the market, accounting for 47,260 contracts, while renewals totalled 23,335. This balance reflects ongoing business expansion alongside tenant retention in established commercial locations.
Offices remained the primary driver of leasing demand, supported by new company formations, regional expansions, and continued interest from international businesses entering the Dubai market. Office leases accounted for the majority of transactions during this quarter. Retail leasing followed, while other asset classes recorded more modest activity.
Leasing Contracts Breakdown by Asset Class:
- Offices: 51,722
- Retail: 11,080
- Warehouses: 191
- Showrooms: 353
- Stores: 56
- Clinics: 54
- Industrial: 1
Supply & Development Plans
On the supply side, Dubai’s commercial development pipeline remains active. As of December 2025, 610 projects were scheduled for delivery, adding approximately 7,438 new units to the market. Retail developments accounted for the largest share of upcoming supply at 55%, followed by office projects at 41%, with hotel rooms making up the remaining 4%.
Looking ahead, the volume of planned commercial supply is expected to increase notably. Approximately 1,694 units are forecast for delivery in 2026, with supply rising further to more than 2,242 units by 2027. This upcoming pipeline is expected to gradually ease supply constraints and support a more balanced commercial market over the medium term.
Implications from Q4 2025 Performance
Q4 2025 proved to be a significant quarter for Dubai’s commercial real estate market, with record transaction values, strong demand for office space, and continued activity in leasing. While short-term demand still outpaces supply, the growing development pipeline over the next couple of years is set to ease some of this pressure and open up new opportunities for buyers and tenants alike.
Overall, Dubai’s commercial real estate market remains adaptable, backed by steady economic growth, investor confidence, and the city’s global business appeal. As new projects come online, the market is likely to become more balanced and diverse, offering both stability for occupiers and long-term value for investors as we move into 2026 and beyond.
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