Dubai's office real estate sector emerged as a top performer in the first half of 2026, with transaction values soaring by nearly 200% year-on-year to AED 15.81 billion. This significant increase was accompanied by a substantial 85% rise in average office property prices, reaching AED 3,202 per square foot.
According to an analysis of transaction data by ANAROCK Middle East, the emirate recorded 2,571 office transactions in H1 2026, marking a 38% increase in volume compared to the 1,860 deals in the same period of 2025. The sharp growth in both value and volume underscores sustained investor interest in high-quality office assets, even amidst regional geopolitical uncertainties.
Demand for Grade A Offices Fuels Price Hikes
The surge in Dubai's office property prices is largely attributed to robust investor appetite for premium commercial properties and a limited supply of Grade A office space within key business districts and free zones. Investors are increasingly willing to pay a premium for income-generating office properties, indicating strong confidence in the market's long-term prospects.
Anuj Kejriwal, CEO – Retail and CEO – Europe, Middle East and Africa, ANAROCK Group, highlighted the impressive figures:
“Office transaction volumes rose 38% year-on-year via 2,571 deals, and transaction value surged nearly 200% to AED 15.81 billion from AED 5.28 billion in H1 2025. Average office prices climbed 85% year-on-year to AED 3,202 per square foot.”
Broader Commercial Market Performance
The robust performance of the office market contributed to an overall positive trend in Dubai's wider commercial real estate sector. The total value of commercial transactions reached AED 65.23 billion in H1 2026, an 8.5% increase from AED 60.14 billion in H1 2025. Overall transaction volumes also rose by nearly 13% to 6,487 deals.
The first quarter of 2026 was particularly strong, with commercial property transaction values estimated at AED 40.75 billion, more than 40% higher year-on-year. This resilience reinforces Dubai's appeal as a stable destination for regional and global capital during periods of uncertainty.
Investor Preferences Shift to Income-Generating Assets
A notable shift in investor preferences was observed, with a move away from land deals towards established, income-generating assets. While land remained the largest commercial property segment by transaction value, land deals declined by 9.3% in value to AED 33.19 billion, and transaction volumes fell by 29.3% to 941 transactions in H1 2026.
Conversely, retail property transactions also demonstrated significant growth, with volumes increasing by 56.2% to 853 deals and transaction value jumping by 174.3% to AED 3.71 billion.
Outlook for H2 2026
Although activity moderated slightly in the second quarter after the exceptional Q1 performance, average commercial property prices still registered a 34% year-on-year increase, reaching AED 3,186 per square foot. This suggests that the Q2 slowdown was likely due to a high base of large land transactions rather than a weakening in demand for prime assets.
ANAROCK anticipates that Dubai's commercial real estate market will continue to be supported by tight Grade A office supply, rising rents, and steady occupier demand throughout the remainder of 2026.