Dubai Commercial Property Transactions Soar to Dh65.2 Billion in H1 2026

Dubai’s commercial real estate market experienced substantial growth in the first half of 2026, with total transactions reaching Dh65.23 billion. This represents an 8.5% year-on-year increase from Dh60.14 billion in H1 2025, according to an analysis by Anarock Middle East. The volume of deals also rose by nearly 13%, from 5,754 to 6,487 transactions.

Office Sector Leads the Surge

The office sector was the primary driver of this growth. Office transaction values almost tripled to Dh15.81 billion in H1 2026, up from Dh5.28 billion in the same period last year. Transaction volumes in this segment increased by 38% year-on-year, encompassing 2,571 deals. Average office prices climbed by 85% year-on-year, reaching Dh3,202 per square foot. This significant increase highlights a strong demand for Grade A office spaces, particularly in key business districts and free zones, amid constrained supply.

Retail Sector Also Sees Strong Gains

Retail assets similarly demonstrated robust performance. Transaction volumes for retail properties rose by 56.2% to 853 deals, with transaction values increasing by 174.3% to Dh3.71 billion. The average price per square foot for retail assets grew by 54% year-on-year, reaching Dh3,486. Anarock's analysis attributes this to heightened consumer activity and sustained investor interest in well-located retail properties.

Land Transactions Cool Off

In contrast to the office and retail segments, the land market saw a decrease in activity. Land transaction volumes fell by 29.3% to 941 deals, and transaction values declined by 9.3% to Dh33.19 billion. This trend suggests a shift in capital away from land banking towards income-generating assets with immediate cash flows.

Quarterly Performance Highlights

The first quarter of 2026 was particularly strong, with commercial real estate transaction values estimated at Dh40.75 billion, marking over 40% growth compared to Q1 2025. While Q2 saw a moderation with transaction volumes falling by approximately 22% quarter-on-quarter and values down nearly 40% sequentially, average prices continued to rise. The average price per square foot in Q2 2026 increased by 34% year-on-year to Dh3,186, indicating sustained investor willingness to pay a premium for prime, income-generating commercial properties in Dubai.