Dubai’s commercial property market recorded one of its strongest months in October, with transactions and values rising across offices and retail assets, according to new data from Engel & Völkers Middle East.
Commercial sales increased 21.4% year-on-year to 1,274 transactions worth Dhs 12.3 billion, up 9.9% from October 2024. The office sector saw the fastest growth, with deals rising 64% in volume and 98% in value. The agency linked the trend to strong demand for Grade A space in Business Bay and Jumeirah Lakes Towers.
Off-plan shift
Engel & Völkers reported a major shift towards off-plan commercial projects. Off-plan office sales jumped from 69 in the third quarter of 2024 to 389 in the same period of 2025. In October, 225 off-plan office transactions were recorded compared with 33 a year earlier.
Projects including Lumena, Lumena Alta, AHS Tower, Samana Barari Avenue, 31 Above and Aspirz Tower are drawing investor interest as developers focus on sustainability, wellness features and improved digital infrastructure.
“The off-plan office segment has become one of Dubai’s most dynamic investment stories this year,” said Alex Lourenço, Head of Commercial at Engel & Völkers Middle East.
“With occupancy in existing Grade A buildings at near-record levels, investors are turning to new developments that match global standards for design and efficiency. The response has been extraordinary. We’re seeing strong pre-sales and unprecedented confidence in Dubai’s long-term commercial outlook.”
Limited prime supply
Prime office occupancy remains above 90%, with tight supply in established districts pushing up rental yields and capital values. Engel & Völkers expects this environment to continue into 2026, particularly in mixed-use areas such as Business Bay, JLT and Arjan, where more developers are adding commercial and retail components to their projects.
Residential trends
The residential market showed signs of stabilisation after two years of strong growth. October saw 18,530 transactions, a slight adjustment from 2024 levels. Off-plan accounted for 68.3% of activity, while secondary sales rose 14.4% month-on-month, reflecting stronger demand for ready homes.
Apartments made up 85.8% of sales, supported by accessible pricing and average rental yields of 6.8%. Apartment prices in key communities rose 5 to 10% year-on-year, while many villa areas recorded gains between 10 and 20%.
Outlook for 2026
Engel & Völkers expects commercial real estate to maintain strong momentum next year, supported by limited Grade A supply, rising corporate demand and Dubai’s continued push to attract global headquarters. The rapid growth of off-plan office projects signals a new phase for the sector as it becomes a larger driver in the city’s economic landscape.
