Dubai's commercial real estate market recorded AED 65.23 billion in transactions during the first half of 2026, an 8.5% year-on-year increase from AED 60.14 billion in H1 2025, according to an analysis of transaction data by ANAROCK Middle East. The standout performer was the office segment, where transaction values nearly tripled to AED 15.81 billion from AED 5.28 billion a year earlier.
The Office Sector's Breakout Performance
Office transaction volumes climbed 38.2% to 2,571 deals, compared with 1,860 during the same period last year, while transaction values jumped an extraordinary 199.3%. Average office prices surged 85% to AED 3,202 per square foot. "This points to intensifying demand for Grade A office space amid constrained supply in key business districts and free zones," said Anuj Kejriwal, CEO of Retail and EMEA at ANAROCK Group.
Separate data from property consultancy Cavendish Maxwell largely corroborates the office-market surge, putting H1 office sales at AED 15.8 billion — nearly double the total sales value recorded across the entirety of H2 2025. Transactions climbed more than 38% year-on-year to roughly 2,600, with off-plan deals accounting for 65% of activity. High-value transactions hit record levels, with more than 220 purchases above AED 20 million, up sharply from just 20 across both halves of last year — and 95% of those big-ticket deals were off-plan.
Retail Also Posted Strong Gains
Beyond offices, Dubai's retail real estate segment also saw a sharp uptick, with transaction volumes rising 56% year-on-year to 853 deals. Transaction values more than doubled to AED 3.71 billion from AED 1.35 billion in the same period last year, driven by a resurgent consumer economy and growing investor interest in well-located retail formats. Average retail prices climbed 54% to AED 3,486 per square foot.
Land Deals Were the Notable Drag
While land remained the largest commercial property segment by transaction value, it was also the primary drag on overall market volumes. Land transactions fell 29.3% year-on-year to 941 deals, with transaction values declining 9% to AED 33.19 billion from AED 36.60 billion in H1 2025. "Evidently, investor interest is moving away from land banking and toward income-generating office and retail assets," Kejriwal said.
A Quarter-by-Quarter Breakdown
Q1 2026 was the strongest quarter on record for Dubai's commercial real estate market, with transaction value estimated at AED 40.75 billion, up over 40% year-on-year, despite rising regional tensions throughout the quarter. Q2 2026 saw a natural moderation after that exceptional start, with transaction volumes down about 22% and transaction value down close to 40% on a sequential quarter-on-quarter basis. On a year-on-year basis, however, Q2 2026 volumes were broadly stable, down just about 1% compared to Q2 2025.
Dubai's Resilience Amid Regional Instability
Perhaps the most notable takeaway from the report is how resilient Dubai's commercial market proved despite ongoing geopolitical turmoil in the wider Middle East. "Dubai's commercial real estate market has once again displayed its remarkable external shock-absorbing abilities," Kejriwal said. Through this period, Dubai has continued building its reputation as a safe haven for regional and global capital during spells of geopolitical uncertainty — a pattern consistent with the emirate's historical performance during earlier cycles of regional instability.
A Structural Shift, Not Just a Cyclical Bump
A separate report from W Capital Real Estate Brokerage, using Dubai Land Department data, found commercial property transactions totaled AED 19.5 billion ($5.31 billion) across 3,415 deals in H1 2026 — a 183% year-on-year increase that already exceeded the entire commercial property sales recorded throughout all of 2025 by 7.7%. The average commercial transaction value nearly doubled, from roughly AED 2.8 million in H1 2025 to AED 5.7 million in H1 2026. Al Zarooni of W Capital attributed the surge to long-term corporate expansion strategies — including headquarters relocations, workforce growth, and operational expansion — arguing these reflect a structural shift in demand rather than short-term speculative investment activity, driven by Dubai's growing role as a regional headquarters hub for global companies.
What's Supporting the Momentum
Analysts point to several structural factors underpinning the market's strength: Dubai's tax advantages, its freehold ownership regime for foreign investors, and the continued expansion of the Golden Visa scheme. Cavendish Maxwell's Vidhi Shah noted that while "the structural foundations of Dubai's office real estate sector — including a diversified economy, strategic location and pro-business regulatory environment — remain very much intact," the market has entered the second half of 2026 in a more uncertain environment following the Q2 moderation.
What's Next for Office Supply
Despite a sizable development pipeline, Cavendish Maxwell expects office supply to remain constrained through the rest of 2026, as historical trends suggest construction delays will likely push back some planned deliveries — particularly for projects still in early development stages that are more susceptible to disruption from regional uncertainty. That persistent supply constraint, paired with continued demand for Grade A space, suggests upward pressure on office prices could continue even if overall transaction volumes moderate further. For the full ANAROCK Middle East report, see Khaleej Times' coverage.
With near-term volumes likely to continue reflecting swings in regional sentiment, Dubai's commercial real estate market heads into the second half of 2026 having already proven its resilience — but with analysts watching closely to see whether the office sector's remarkable growth can be sustained against a still-uncertain geopolitical backdrop.