Dubai Office Deals Surge 11.7% as Small Investors Re-enter Market

Dubai’s office property market recorded an 11.7% increase in sales transactions during the third quarter of 2026, driven by a return of smaller investors and a shift away from large institutional deals, according to a report from CRC Property released on Tuesday.

The emirate saw 2,789 commercial property sales transactions in Q3, down just 1.8% from the previous three months. That marks an improvement from the 21.5% quarterly drop in Q2, the report said.

Despite the rise in transaction numbers, total commercial sales value fell 25.6% to Dh18.04 billion, reflecting a move toward smaller property deals.

Office Transactions Rise, Values Fall

Office transactions increased 11.7% quarter-on-quarter to 1,123 units, but their total sales value dropped 42% to Dh4.35 billion. The average office transaction value declined to about Dh3.87 million, signalling greater participation from smaller investors.

Even with the quarterly decline, office sales value was 40.4% higher than the same period last year.

Behnam Bargh, Managing Director of CRC Property, said the market was showing signs of stabilisation rather than a full recovery. “Q3 was a quarter of stabilisation rather than recovery. Deal counts held firm, but the mix shifted toward smaller transactions,” Bargh said. He advised investors and occupiers to focus on realistic pricing and quality income-generating properties.

Downtown Jebel Ali Overtakes Business Bay

Downtown Jebel Ali emerged as Dubai’s busiest office location in the third quarter, accounting for nearly 30% of all office transactions. It overtook Business Bay, indicating a shift in investor interest toward alternative office areas.

Jumeirah Lakes Towers ranked third with 162 transactions, up 47.3% from the previous quarter.

Meanwhile, average secondary office selling prices fell by 1.2% to Dh1,930 per square foot, a smaller decline than the 3.4% drop recorded in the second quarter.

Industrial Land Sales Reach Dh6.81 Billion

Commercial land transactions totalled Dh6.81 billion in Q3, accounting for about 38% of total commercial property sales value.

Ashley Sonnenberger, Industrial and Logistics Manager at CRC Property, said demand for industrial land was driven by investors and businesses seeking to secure long-term sites. “With local authorities no longer releasing new land, investors and occupiers seeking long-term industrial positions are securing sites directly rather than waiting for fresh allocations,” Sonnenberger said.

Retail and Leasing Trends

CRC Property reported a 15% quarter-on-quarter rise in buyer enquiries, with retail enquiries leading the growth at 34%. The figures point to continued investor interest in selected commercial property segments despite lower overall transaction values.

The report also noted a shift in commercial leasing payment preferences. Instalrment-based payment plans accounted for 83% of CRC Property’s commercial leases in Q3, up from 73% in Q2. The share of leases paid through a single annual cheque fell from 27% to 17%. The shift indicates that businesses are increasingly prioritising cash flow flexibility when negotiating commercial leases.

Bargh said investors are becoming more selective as Dubai’s commercial property market adjusts to changing economic conditions. The report suggests that smaller transactions, demand for quality office space, and interest in industrial land are helping maintain market activity, even as overall commercial property deal values decline.