Dubai’s Office Market Posts a Record First Half, but Momentum Cooled in Q2

Office sales nearly tripled to AED 15.81 billion in the first six months of 2026, driven by off-plan launches and larger-ticket buyers concentrated in Business Bay. Second-quarter data shows the pace has since moderated.

A record half-year, led by offices

Dubai’s commercial real estate market recorded AED 65.23 billion in transactions in the first half of 2026, up 8.5% from AED 60.14 billion in H1 2025, according to an analysis of transaction data by ANAROCK Middle East. Deal volumes rose nearly 13% to 6,487 transactions from 5,754. ANAROCK defines the commercial segment as offices, retail, land, hotel apartments, hotel rooms, whole buildings and industrial assets.

The first quarter was the strongest on record, with transaction value estimated at about AED 40.75 billion, up more than 40% year on year. Engel & Völkers Middle East reaches a similar conclusion on its own basis: 6,470 commercial sales worth AED 62.2 billion made H1 2026 the strongest first half on record for both volume and value.

Offices were the standout. ANAROCK counted 2,571 office transactions, against 1,860 a year earlier, with a value of AED 15.81 billion, nearly triple the AED 5.28 billion recorded in H1 2025 (+199.3%). Average office prices rose 85% year on year to AED 3,202 per sq ft.

One market, several totals: why the numbers differ

Published totals for Dubai’s commercial market vary widely because each firm draws the boundary differently. The table sets out the three main H1 2026 figures and what each one includes.

Dubai, H1 2026 (January–June). Sources: ANAROCK Middle East (deal count via Khaleej Times); Engel & Völkers Middle East; W Capital Real Estate Brokerage, citing Dubai Land Department data.

On offices specifically, the sources agree closely. ANAROCK counts 2,571 deals, W Capital 2,569, Engel & Völkers 2,570 and Cavendish Maxwell about 2,600. The three that report office value (ANAROCK, W Capital and Cavendish Maxwell) all put it at about AED 15.8 billion.

The definitional gap changes how large offices appear. PROPERTY TIMES’ calculation puts offices at roughly 24% of total commercial value on ANAROCK’s broad basis (AED 15.81 billion of AED 65.23 billion), because land is the largest segment. On W Capital’s offices-and-retail basis, offices account for more than 81% of value. Both are accurate for their own definitions, so readers should check which basis a headline uses.

What is driving office demand

Off-plan launches. Cavendish Maxwell found that off-plan deals made up 65% of office transactions in H1. W Capital, citing Dubai Land Department data, puts off-plan office sales at AED 13 billion across 1,668 deals, against AED 2.7 billion for completed offices. Separate analysis by The Real Estate Reports, published by Gulf Business, found commercial unit sales of AED 16.07 billion between 1 January and 19 May, against AED 5.17 billion a year earlier. Omniyat’s Lumena and Lumena Alta generated AED 4.58 billion in combined sales.

Bigger tickets. Cavendish Maxwell recorded more than 220 office purchases above AED 20 million in H1, against just 20 across both halves of 2025. W Capital reports that the average commercial transaction value nearly doubled, from about AED 2.8 million in H1 2025 to AED 5.7 million.

Higher prices. Average office prices reached AED 3,202 per sq ft (+85% year on year), while average retail prices rose 54% to AED 3,486 per sq ft, according to ANAROCK.

Corporate and institutional demand. W Capital chairman Walid Al Zarooni attributes the boom to the growth of Dubai’s corporate base, rising employment and the relocation of international companies, and describes institutional demand as a primary driver. That is the firm’s own reading of the data.

Where the deals are

Office activity is concentrated. Cavendish Maxwell’s ranking of districts by H1 office transactions shows Business Bay well ahead of the rest.

Source: Cavendish Maxwell, via Khaleej Times, 6 August 2026. The five districts together account for roughly 70% of office transactions.

W Capital’s figures, which use Dubai Land Department data, show the same picture in value terms. Business Bay recorded about AED 8 billion in office sales across 814 transactions, more than half of total office sales value in the half-year. In the ready market, offices of 1,000 to 2,000 sq ft made up 53% of sales, according to Cavendish Maxwell.

Land cooled as retail climbed

Land remained the largest commercial segment by value at AED 33.19 billion, but activity slowed. Deals fell 29.3% to 941 and value fell 9.3%, according to ANAROCK, which describes investor interest as moving away from land banking and toward income-generating office and retail assets. Retail sales rose 50.2% to 853 transactions, per Engel & Völkers.

The second-quarter signal

The record first quarter carried much of the half-year: at AED 40.75 billion, it accounts for about 62% of ANAROCK’s H1 total (PROPERTY TIMES calculation, using an estimated Q1 figure). ANAROCK reports that across the whole commercial segment, Q2 2026 volumes were about 1% lower than Q2 2025 and value about 21% lower, while average price per sq ft rose 34% to AED 3,186. ANAROCK also points to a high base set by large land deals in Q2 2025. In offices, Cavendish Maxwell recorded transactions almost 36% below Q1, with a slight moderation in prices and rents.

What to watch in the second half

1. Q3 transaction data. Whether Q2’s cooler value is a pause or a trend.
2. Off-plan versus completed. With about two-thirds of office deals off-plan, demand for ready space will be tested as buildings complete. (PROPERTY TIMES analysis)
3. Grade A supply and rents. ANAROCK expects tight Grade A supply, rising rents and steady occupier demand to support the market through the rest of 2026.
4. Roughly 70% of office deals sit in five districts, led by Business Bay, so a slowdown in one launch pipeline would show up quickly in citywide numbers. (PROPERTY TIMES analysis).