Dubai commercial property values in 3-fold increase to an average Dh14.4 million

Dubai: Dubai's commercial property are seeing an over 3x times increase in average sales price over the last 12 months, according to new data.

Which means the average deal size on commercial real estate in Dubai is now sealed at Dh14.41 million - compared to the Dh4.27 million in July 2024, according to data from Allsopp & Allsopp.

This is brought on by a combination of higher land values as well as value gains on the piece of property itself. But when it comes to new rental contracts in July, average rates actually recorded a drop.

"This sharp rise underscores a market where investors are not only active but increasingly targeting premium, strategically located properties, driving competition and elevating overall asset values," the report finds.

On rentals for commercial properties, average lease rates in July was at Dh530,200, a decline from last year’s Dh1.69 million.

"This trend suggests an opportunity for tenants to secure favourable deals now before rates inevitably adjust upward in response to growing demand and limited supply," the report says.

In July last, overall commercial sales and leasing transaction values were higher by 271% compared to June, while transaction volumes rose 75%. "Compared year-on-year, the surge is even more dramatic: 283% growth in transaction value and a 40% increase in volume from July 2024 to July 2025," the report adds.

Demand for office and commercial property in the city has been running high, and there were a raft of deals that saw new investors come in. This included a deal that saw the real estate investment vehicle of Bank Muscat buy into a GEMS-owned school.

When it comes to offices, the demand just keeps on hitting new highs. "Dubai is attracting both established corporations relocating their operations and an influx of new businesses setting up," the report adds.

In July, the top investing nationalities included India, the Netherlands, Saudi Arabia, and the UK.

"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," the Allsopp & Allsopp report adds.