Dubai’s commercial property sector maintained its upward trajectory during the first half of 2026, with offices emerging as the clearest engine of growth. Despite geopolitical uncertainty across the wider region, investors continued to deploy capital into the emirate, particularly into properties capable of producing stable rental income.
Commercial real estate transactions reached AED 65.23 billion ($17.76 billion) between January and June, representing an increase of 8.5% compared with the same period in 2025. The number of transactions also advanced, rising by almost 13% from 5,754 to 6,487 deals. The figures suggest that investment activity remained resilient even as external risks affected sentiment in other markets.
The data comes from an analysis by ANAROCK Middle East reported by The Economic Times. The research covers several parts of Dubai’s commercial market, including offices, retail premises, land, hotel properties, entire buildings and industrial assets.Â
Office Properties Become the Main Growth Engine
The office segment delivered the most significant increase during the six-month period. The value of office transactions climbed to AED 15.81 billion, compared with AED 5.28 billion in the first half of 2025. That represents an increase of almost 200% within a year.
Activity was not limited to a handful of expensive transactions. The number of office deals rose by more than 38% to 2,571, showing broader demand for workspace assets. At the same time, average office prices increased sharply, reaching AED 3,202 per square foot — around 85% higher than a year earlier.
The figures highlight an increasingly competitive market for high-quality business space. Grade A offices remain particularly attractive as companies seek premises in established commercial districts and free zones. Limited availability of premium stock is adding pressure to prices and strengthening the position of owners of completed properties.
For investors, this changes the logic of Dubai’s commercial market. Capital is increasingly moving toward assets that can provide immediate rental returns rather than being committed exclusively to land intended for future development.
Retail property followed a similar direction. Transaction volumes in the segment increased by more than 56% year on year to 853 deals, while their combined value reached AED 3.71 billion. That was roughly 174% above the level recorded during the first half of 2025. Average retail property prices also increased, rising by 54% to AED 3,486 per square foot.
Investors Shift Toward Income-Producing Assets
Land remained a major component of commercial investment, but its performance contrasted sharply with offices and retail properties. The number of land transactions declined by about 29% to 941 deals, while their total value fell by approximately 9% to AED 33.19 billion.
This divergence points to a broader change in capital allocation. Instead of concentrating primarily on land banking and future appreciation, some investors appear to be giving greater weight to completed assets capable of generating cash flow immediately.
The trend may become increasingly important as commercial property prices rise. Higher acquisition costs encourage investors to assess rental income, occupancy, tenant quality and the long-term ability of an asset to preserve value rather than relying mainly on capital appreciation.
The first quarter of 2026 was exceptionally active. Commercial transaction value was estimated at AED 40.75 billion, more than 40% higher than a year earlier. Activity moderated in the second quarter, with transaction volumes falling approximately 22% from Q1 and transaction value dropping close to 40%. However, the slowdown followed an unusually strong start to the year rather than a broad collapse in demand.Â
Pricing provides another indication of the market’s underlying strength. Despite the quarterly moderation, the average commercial property price in Q2 was AED 3,186 per square foot, around 34% higher than during the corresponding period of 2025. Investors therefore continued to pay premiums for well-positioned assets even as the pace of transactions eased.
Tight Office Supply Supports the 2026 Outlook
Dubai’s commercial property performance also reflects changes in the emirate’s broader business environment. Continued corporate expansion, the arrival of international companies and demand for space in established business districts are increasing competition for premium offices.
For property investors, constrained Grade A availability could remain one of the defining factors through the remainder of 2026. When high-quality supply cannot expand as quickly as occupier demand, existing offices can benefit through higher rents, stronger occupancy and greater investor competition.
At the same time, the second-quarter moderation is an important reminder that headline transaction values can fluctuate significantly because of large individual land and building deals. The more revealing development may therefore be the shift within the market itself: offices and retail properties are attracting substantially more capital while land activity has softened.
The first-half figures indicate that Dubai’s commercial real estate sector is becoming increasingly focused on operational performance and recurring income. If corporate demand remains firm and premium office supply stays constrained, completed commercial assets could continue to command strong investor attention through the end of 2026.