Dubai, 18 August 2026: Dubai’s commercial real estate market has demonstrated notable resilience through the first half of 2026, despite the wider region navigating a challenging geopolitical environment. An analysis of transaction data by ANAROCK Middle East finds that the commercial segment, comprising office, retail, land, hotel apartments, hotel rooms, whole buildings and industrial assets, recorded a combined transaction value of AED 65.23 billion in H1 2026.
Anuj Kejriwal, CEO – Retail & CEO – Europe, Middle East & Africa, ANAROCK Group, says,
"The combined transaction value was AED 60.14 billion in H1 2025, so this is an increase of nearly 8.5%. Transaction volumes climbed to 6,487 deals from 5,754 deals in this period, a rise of nearly 13%. Dubai’s commercial real estate market has once again displayed its remarkable external shock-absorbing abilities."
While regional tensions weighed briefly on sentiment early in the year, transaction activity for the half year stayed firmly in growth territory, reflecting the structural demand depth for Dubai's office and retail assets.
"The office segment was the standout performer of H1 2026," says Kejriwal. "Office transaction volumes rose 38% Y-o-Y 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% Y-o-Y to AED 3,202 per square foot. This points to intensifying demand for Grade A office space amid constrained supply in key business districts and free zones."
Retail assets also recorded a sharp uptick, with transaction volumes rising 56% Y-o-Y to 853 deals and transaction value more than doubling, up 174% to AED 3.71 billion. Average retail prices rose 54% Y-o-Y to AED 3,486/sq.ft. thanks to a resurgent consumer economy and growing investor interest in well-located retail formats.
Strong Q1, Measured Q2
The quarterly trends are very encouraging. Q1 2026 (Jan-Mar) was the strongest quarter on record for Dubai's commercial real estate market, with transaction value estimated at AED 40.75 billion, up over 40% Y-o-Y, despite the increasing regional tensions through the quarter. Through this period, Dubai ramped up its image as a safe haven for regional and global capital during spells of geopolitical uncertainty, as evidenced by the emirate's earlier cycles of regional instability.
Q2 2026 (Apr-Jun) saw a natural moderation after this exceptional start, with transaction volumes down about 22% and transaction value down close to 40% on a sequential Q-o-Q basis.
"On a year-on-year basis, Q2 2026 volumes were broadly stable, down just about 1% compared to Q2 2025 and transaction value was around 21% lower," says Anuj Kejriwal. "This was largely on account of a high base set by large land deals in Q2 2025. Notably, despite moderation in transaction value, the average price per square foot in Q2 2026 rose 34% Y-o-Y to AED 3,186. Dubai's commercial real estate buyers remain prepared to pay a premium for prime, income-generating assets."
Despite the moderation in Q2, commercial asset pricing held firm and even rose - a hallmark of markets driven by end-user and investor demand rather than speculative churn. Global capital continues to view Dubai as a stable, well-regulated hub, which translates into sustained appetite for commercial assets through a turbulent geopolitical stretch.
Land Segment Moderates as Capital Rotates
The land segment was the primary drag on overall volumes in H1 2026, with transactions down 29% Y-o-Y to 941 deals, and value down 9% to AED 33.19 billion. Evidently, investor interest is moving away from land banking and toward income-generating office and retail assets. This trend is consistent with the sharp gains recorded in those segments.
Property Type Performance (H1 2026 vs H1 2025)
| Property Type | H1 2025 Volume | H1 2026 Volume | Vol % Chg | H1 2025 Value (AED) | H1 2026 Value (AED) | Value % Chg |
| Office | 1,860 | 2,571 | +38.20% | 5.28 Bn | 15.81 Bn | +199.30% |
| Retail | 546 | 853 | +56.20% | 1.35 Bn | 3.71 Bn | +174.30% |
| Land | 1,331 | 941 | -29.30% | 36.60 Bn | 33.19 Bn | -9.30% |
| Other | 1,950 | 2,053 | +5.28% | 13.80 Bn | 11.33 Bn | -17.90% |
| Total | 5,687 | 6,418 | +12.85% | 57.03 Bn | 64.04 Bn | +12.29% |
Note: Other includes Hotel Apartment & Rooms, Building and IndustrialSource: ANAROCK Research & Advisory
Dubai's commercial real estate market is firmly poised to sustain its growth trajectory through the remainder of 2026. The emirate's tax advantages, freehold ownership regime for foreign investors, and continued expansion of the Golden Visa scheme will continue to drive this momentum.
"Near-term volumes may continue to reflect swings in regional sentiment," sums up Kejriwal. "However, the Dubai Market's underlying fundamentals, tight Grade A office supply, rising rents and steady occupier demand will ensure that it stays firmly on a growth path."
