The commercial real estate in Dubai has a significant increase in the average value of property. According to a report published by Allsopp, the sale prices have increased by over three times compared to the year before with the prices rising to AED 14.41 million in July 2025, up 3.2 times compared with July 2024 when the price was AED 4.27 million.
This sharp rise is largely explained by the rising value in land and the increased attraction of top-quality real estate in locations with strategic advantage. In the report it is also noted that the investors are focusing on high value properties hence it makes the market tight and this increases the competition.
This marked increase helps to highlight the fact that investors are not only active within this market, but they are becoming more selective in their investment targets with an attraction to high quality properties in strategic locations that are influencing competition and increasing the asset valuation as a whole as the report explains.
The unexpected trend is the decline in average rents that dropped to AED 530,200 in July 2025 or notably less than the same rate of AED 1.69 million a year ago. Analysts have linked the decline to an opportune moment when tenants and companies in need of quality offices can be offered services at reasonable prices.
This pattern is an indicator that is open to tenants to get favourable offers at current rates before they begin to curtail with rising demand and a supply shortage. Allsopp and Allsopp note that.
Both sales and leasing transactional activity exhibited a strong momentum event in July: transaction values surged 271% compared to June, while volume rose 75% month-over-month and a 283% increase in transaction value and 40% increase in volume was observed when compared to July of 2010.
This incremental increase is also majorly fuelled by a continual inflow of businesses moving to and expanding operations into Dubai, and consequently increasing the demand of quality commercial property, more so, within the business centres.
Global Investors Drive the Boom
The commercial real estate boom is not solely fueled by domestic buyers. July saw strong interest from international investors, with top investing nationalities including:
🇮🇳 India
🇳🇱 Netherlands
🇸🇦 Saudi Arabia
United Kingdom
This highlights Dubai’s growing global appeal as a business hub offering tax advantages, excellent infrastructure, and a supportive regulatory environment.
“Dubai is attracting both established corporations relocating their operations and an influx of new businesses setting up,” the report adds.
Supply vs. Demand: The Road Ahead
As the demand for Grade A commercial properties continues to rise, experts warn that limited supply could create pressure in the near future. Developers and landlords may need to act quickly to expand inventory in key zones like Downtown Dubai, DIFC, and Business Bay.
“With so many businesses moving operations to Dubai and new ventures launching, the availability of Grade A commercial stock will be critical to sustaining economic growth,” Allsopp & Allsopp concludes.
Conclusion:
Dubai’s commercial property market is showing no signs of slowing down, with investors chasing premium spaces and values hitting new highs. For businesses and investors alike, the current landscape presents both challenges and opportunities — especially as rents momentarily soften and sales surge.
Source – https://gulfnews.com/business/property/dubai-commercial-property-values-in-3-fold-increase-to-an-average-dh144-million-1.500233066
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