Dubai’s commercial real estate sector is heading toward a significant reset, with analysts expecting a two-tier office market to emerge by 2028.
The shift will be driven by the introduction of new Grade A office buildings that are set to command premium pricing and alter tenant expectations across the city.
Although the commercial sector has recorded strong performance this year—growing 77.9% in sales value and 35.1% in transaction volume over the first 11 months—it has not evolved at the same pace as Dubai’s residential market. For more than 15 years, office buildings have largely remained unchanged in design, quality and construction standards, even as residential developments embraced new architecture, luxury finishes and modern codes.
Dubai is now approaching a turning point as a new generation of Grade A office spaces is set to enter the market. He notes that the real transformation will begin once these projects start handing over.
“The arrival of next-generation Grade A offices will reshape tenant preferences and reset the commercial sector,”
said Firas Al Msaddi, CEO of fäm Properties.
The first handovers of these premium offices are expected in 2028, marking what Al Msaddi describes as a “moment of truth” for older buildings. As modern, efficient and architecturally advanced offices become available, secondary properties will likely face pricing pressure. This shift is expected to create a two-tier market, with Grade A assets commanding higher rents while older buildings adjust to remain competitive.
One current example of sustained Grade A demand is Vision Tower in Business Bay, which Al Msaddi highlights for its strong performance and ability to attract established corporates. The building’s half-floor minimum unit size naturally appeals to serious companies, reinforcing the appetite for high-quality commercial space.
Dubai’s broader real estate market continues to set records. The residential sector registered 197,263 transactions worth AED 624.1 billion by late 2025—surpassing full-year figures with one month remaining. In the commercial sector, AED 15.5 billion in sales value was recorded over the first 11 months, up sharply from AED 8.7 billion last year, with total transactions rising from 3,970 to 5,364.
Dubai Real Estate Commercial Market: January–November 2025
|
Property type |
Sales value |
Volume |
|
Office |
AED 11.2B |
4,012 |
|
Shop |
AED 3.8B |
1,321 |
|
Showrooms |
AED 70.2M |
13 |
|
Warehouse |
AED 24.4M |
7 |
|
Workshop |
AED 3.3M |
6 |
|
Clinic |
AED 4.8M |
2 |
|
Sized Partition |
AED 105M |
1 |
|
Building |
AED 245M |
1 |
|
Gymnasium |
AED 865,067 |
1 |
News Source: Total Communications
