Dubai’s commercial property market: an exceptional year in 2025

Mounir, founder of DRN Dubai Real Estate, a French estate agency in Dubai

By Mounir Redjdal

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The year 2025 will be remembered as a A record year for commercial property in Dubai. Sales of commercial property recorded a a dramatic increase of +79.3 from Q1 to Q3, reaching AED 15.4 billion, or approximately 4.2 billion dollars. This performance confirms that the emirate’s dynamism is no longer confined to the residential sector, but now extends fully to commercial assets.

Offices, logistics warehouses, local shops and strategic retail spaces are all showing a sustained demand, driven by economic growth, the rise of entrepreneurship and the international appeal of Dubai.

Economic growth that is driving demand

The strong growth in the commercial market is primarily a reflection of a a rapidly expanding economy. Dubai continues to attract businesses from all over the world, whether they are multinationals, international SMEs or high-growth start-ups. This momentum is automatically driving an increase in demand for workspaces, logistics infrastructure and retail outlets.

The emirate’s pro-business policies, combined with an attractive tax regime and streamlined administrative procedures, make it easy for companies to set up operations quickly. As a result, well-located retail premises become strategic assets, which are often snapped up quickly by the market.

Offices: making a strong comeback

The office sector has seen a a marked recovery in 2025, particularly in central business districts and economic hubs. Demand is driven by the finance, technology, consultancy and professional services sectors, which favour prime locations offering connectivity, visibility and high-quality infrastructure.

Contrary to fears surrounding remote working, many companies are now opting for higher-quality offices, which are better located and better equipped, rather than a drastic reduction in floor space. This trend is supporting prices and boosting the appeal of well-located properties.

Logistics and warehousing: a strategic pillar

The growth of e-commerce, international trade and regional supply chains has propelled the warehouses and logistics centres among the best-performing. Dubai benefits from a unique geographical location, linking Europe, Asia and Africa, making it an essential logistics hub.

Industrial and logistics estates located near ports, airports and major road networks attract investors and operators, with high occupancy rates and stable returns. This sector offers long-term visibility, which is particularly valued by institutional investors.

Shops and retail: targeted demand

Far from declining, high street retail is evolving towards more targeted and experiential formats. Local shops, retail parks and prime locations in high-footfall areas continue to attract retailers and investors.
Population growth and purchasing power are driving steady demand, particularly in expanding residential areas.

A strong signal to investors

The exceptional performance in 2025 confirms that commercial property in Dubai has become a a strategic tool for asset diversification. Attractive returns, regulatory stability and market depth provide a reassuring framework in an uncertain global environment.

For investors looking for stability, a steady income and potential for capital appreciation, Dubai’s commercial property market is now establishing itself as a credible and high-performing alternative, on a par with the residential sector.

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Mounir Redjdal

Founder of DRN Real Estate

Mounir Redjdal is an entrepreneur and the founder of DRN Dubai Real Estate, a French-speaking estate agency based in Dubai since 2017.

An active investor in the Middle East for over 15 years, he supports international investors with a structured, long-term approach.

Under his leadership, DRN has exceeded €100 million in transactions in 2021 and has established itself in Dubai’s French-speaking market.

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