A report by Engel & Volkers Middle East, a company specializing in luxury residential and commercial real estate services in the UAE, revealed a 463.7% growth in the sales of offices under construction in Dubai during the third quarter of 2025, compared to the same period last year. It recorded 389 transactions during Q3 2025, compared to 69 transactions in Q3 2024. In October alone last month, there were approximately 225 transactions for the sale of offices under construction, compared to 33 transactions in October 2024, marking a 582% increase. The report indicates that behind these growth figures lies a new phenomenon reshaping the commercial real estate landscape: the significant growth in demand for commercial offices under construction. The report adds that commercial office projects like 'Lumina', 'Lumina Alta', 'Tower AHS', 'Samana Prairie Avenue', '31 Abu', and 'Tower Aspires' are leading this growth, attracting investors looking to be part of the next generation of work environments in Dubai. These projects are designed at their core to incorporate sustainability, wellness, and digital infrastructure. Furthermore, the report states that Dubai's commercial real estate market delivered exceptional performance last October, with sales transactions increasing by 21.4% year-on-year, and the number of deals reaching 1,274 transactions valued at AED 12.3 billion, a 9.9% increase compared to the same month last year. The report confirmed that the office sector was the primary driver of the recovery seen in the commercial real estate market, with transaction volumes up by 64% and value up by 98%, reflecting a sustainable demand for Grade A offices in established commercial areas like Dubai Creek Harbour and Jumeirah Lakes Towers. The report also noted that retail assets witnessed significant growth, with sales volumes up by 29% and the total value of sales doubling year-on-year, buoyed by the strength of Dubai's consumer economy and the continuous expansion of international brands. The report affirmed that the figures were driven by the strong demand for commercial offices under construction, a phenomenon set to reshape the commercial real estate market. Alex Lorenzo, Head of Commercial at Engel & Volkers, said: 'Occupancy rates in offices located in prime towers consistently exceed 90%, which keeps supply limited in key and established commercial zones in Dubai and drives up rental yields and capital values.' Regarding Dubai's residential real estate market, the report mentioned that the market is entering a more mature phase after two years of exceptional growth. Last October saw 18,530 sale transactions, representing a slight moderation from the 2024 peak. Off-plan sales constituted 68.3% of the activity, while secondary transactions grew by 14.4% monthly, showing renewed appetite for ready homes. Apartments dominated sales at 85.8%, supported by their affordable prices and an average rental yield growth of 6.8%. Prices in major residential communities increased by 5-10% year-on-year, while many villa communities saw growth of 10-20%, enhancing Dubai's resilience and sustainable investment appeal.
• AED 12.3 billion in commercial real estate sales in Dubai in October.
