Dubai Commercial Real Estate Surges Past AED 65 Billion; Transaction Volume Climbs 13 Perc

Dubai’s commercial real estate market recorded 6,487 transactions in the first half of 2026, a 13 percent rise from 5,754 deals in the same period a year earlier, even as geopolitical turbulence unsettled the broader Middle East. Total transaction value reached AED 65.23 billion, an 8.5 percent year-on-year gain, according to analysis by ANAROCK Middle East.

The office sector drove that growth most forcefully. Transaction value in this segment nearly tripled, jumping 199 percent to AED 15.81 billion, while average office prices rose 85 percent to AED 3,202 per square foot. The surge reflects acute demand for Grade A office space colliding with constrained supply across Dubai’s key business districts. Retail assets posted similarly robust gains: transaction volumes climbed 56 percent and deal value more than doubled at a 174 percent increase. Average retail prices jumped 54 percent to AED 3,486 per square foot, driven by what market observers characterize as a resurgent consumer economy.

Land, by contrast, was the market’s clear weak point. Transactions in this category fell 29 percent while value declined 9 percent. Capital that once flowed toward land banking has rotated toward income-generating assets, particularly office and retail properties that deliver immediate returns.

The quarterly breakdown reveals the market’s internal rhythm. The first quarter of 2026 set a record, with transaction value climbing more than 40 percent year-on-year despite mounting regional tensions during that period. The second quarter showed a natural pullback, volumes declining about 22 percent sequentially. Pricing discipline held, though. The average rate per square foot still climbed 34 percent year-on-year in Q2, underscoring that investor appetite for prime assets persisted even as overall activity moderated.

Industry participants attribute the resilience to structural advantages that continue to draw capital and occupiers. Rizwan Sajan, Founder and Chairman of Danube Group, pointed to healthy demand across both residential and commercial segments and cited his own company’s pipeline as concrete evidence of underlying momentum: Danube Properties is scheduled to deliver 11 projects over an 11-month period. Sajan attributed the city’s continued magnetism to its economic fundamentals, investor confidence and global connectivity, characterizing the current environment as an opportunity to identify quality assets with a long-term perspective rather than a reason to retreat.

That optimism aligns with ANAROCK’s reading of the data. The firm points to Dubai’s tax advantages, freehold ownership regime for foreign buyers and the expanding Golden Visa scheme as factors likely to sustain commercial real estate growth through the remainder of 2026. Near-term transaction volumes may continue to fluctuate with regional sentiment, but the question heading into the second half of the year is whether the office and retail sectors can absorb enough new supply to keep price growth from outpacing the occupier base that underpins it.

For more detailed market analysis, see https://www.tribuneindia.com/news/gurugram/dubai-commercial-real-estate-hits-aed-65-billion-in-h1-2026-up-8-5.