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Dubai Commercial Property Sales to Grow by 50% in 2025

2025-07-29 12:21
According to a report from CRC Property, Q2 2025 was a landmark quarter for Dubai’s commercial real estate market, with sales reaching a record AED 31 billion. This figure is 50% higher than the AED 20.75 billion recorded in the same period last year, highlighting the dynamic growth of the sector. Meanwhile, the number of sales transactions increased by an impressive 75% year-on-year, which CRC described as its most successful quarter to date. CRC Managing Director Behnam Barg noted that this success is a direct result of the team’s customer-centric approach and commitment to creating tangible value for partners.

The office segment saw particularly strong growth, with sales up 93% to AED 2.62 billion. Traditionally leading areas such as Business Bay and Jumeirah Lake Towers remained active, while Motor City and Barsha Heights also saw strong growth. A key driver of the success was the increased demand for off-plan office space, which Barg said was a sign of the maturity of buyers looking to acquire space that meets both current and future needs.

The UAE commercial real estate market is seeing impressive growth, particularly in the warehousing segment. The average sale price of warehousing space reached AED 22.2 million, representing a whopping 107% growth compared to the previous period. This surge was driven by limited supply and strong demand for quality properties in key industrial zones such as Dubai Industrial City, DIP and JAFZA. At the same time, transaction volumes have increased significantly as logistics occupiers actively seek space to support their regional operations.

The office leasing market also showed positive dynamics, with the number of office lease transactions increasing by 30% compared to the previous quarter. The average office lease price was AED 480,768, up 95% year-on-year, reflecting strong demand for modern, well-equipped office space in strategic locations. The report attributes the overall market dynamics to investor confidence, the availability of high-quality commercial properties under development, and continued demand for Class A office and industrial assets.