Dubai's Office, Retail and Industrial Property Sales Hit Record Pace in 2026

Dubai’s commercial real estate market recorded combined transaction value of 65.23 billion UAE dirhams, equivalent to 17.76 billion US dollars, in the first half of 2026, according to findings released by Dubai-based Anarock Property Consultants. That figure spans office, retail, land, hotel apartments, hotel rooms, whole buildings and industrial assets. Transaction volumes climbed nearly 13 percent year-on-year to 6,487 deals, while overall transaction value rose 8.5 percent across the same period.

For residents and businesses that depend on Dubai’s commercial infrastructure, the data points to a city where demand for workspace and retail space is outpacing supply in key districts. The office segment drove much of that pressure. Office transaction volumes surged 38 percent year-on-year, with 2,571 deals recorded, while transaction value nearly tripled to 15.81 billion dirhams from 5.28 billion dirhams in the comparable period of 2025. Average office prices climbed 85 percent year-on-year to 3,202 dirhams per square foot, a reflection of intensifying demand for Grade A space in business districts and free zones where supply remains constrained.

Retail assets told a similar story. Transaction volumes rose 56 percent year-on-year to 853 deals, and transaction value more than doubled, increasing 174 percent to 3.71 billion dirhams. Average retail prices increased 54 percent year-on-year to 3,486 dirhams per square foot, driven by a resurgent consumer economy and growing appetite for well-positioned retail properties.

The first quarter of 2026 was the strongest quarter on record for Dubai’s commercial real estate market. Transaction value reached an estimated 40.75 billion dirhams, up more than 40 percent year-on-year, even as regional tensions escalated during that period.

By contrast, the second quarter showed moderation. Transaction volumes declined approximately one percent year-on-year and transaction value fell around 21 percent compared to the second quarter of 2025. Anarock attributed that decline largely to the high base set by large land deals in the second quarter of 2025, not to any weakening of underlying conditions. Average price per square foot in the second quarter still rose 34 percent year-on-year to 3,186 dirhams, a detail that matters for businesses weighing lease renewals or new premises.

What changed most visibly was where capital went. The land segment contracted, with transactions falling 29 percent year-on-year to 941 deals and value dropping 9 percent to 33.19 billion dirhams. That contraction reflects a broader reallocation away from land banking and toward income-generating assets, particularly office and retail properties that offer immediate returns rather than longer-horizon bets on undeveloped plots.

Anarock’s report frames this pricing resilience as a market driven by end-user and investor demand rather than speculative activity. Global investors continue to treat Dubai’s commercial sector as a stable, well-regulated destination for capital, even as geopolitical tensions persist across the region. That confidence, the report argues, explains why commercial asset pricing held firm and increased through the second quarter’s moderation.

The practical question for businesses and workers across Dubai is whether supply in Grade A office districts and prime retail corridors can keep pace with demand that shows little sign of easing. Whether developers respond with enough new stock to relieve that pressure, or whether prices continue their upward trajectory, will shape the city’s commercial landscape well into 2027.