According to industry officials, Dubai commercial real estate sector has led to an unprecedented increase in demand, with first class office space recording annual ratings of up to 12% this year.
Dubai International Financial Centre (DIFC) and Business Bay are expected to lead the demand for premium commercial rooms in the Emirate and become the focus of ongoing commercial investment by real estate companies.
In these areas, up to 20% are also expected to participate in rental rentals after the renovation and expansion of Class A and B buildings.
“As Dubai strengthens its position as a global business hub, we expect commercial property values to rise further, with prime office spaces seeing annual appreciation of 8-12 per cent,” Anis Sajan, Vice Chairman of Danube Group, told Arabian Business.
“DIFC and Business Bay are leading the way for premium office space demand, with the former remaining the major financial hub, attracting global banks, wealth management firms, and fintech startups, while Business Bay emerging as the go-to destination for corporate offices and multinational companies,” he said.
Sajan said these areas will continue to be the focal point for commercial investments in the coming months and years.
Jatiinder Juss, Director at Dubai-based RedRock Real Estate, said in 2025, foreign investors are expected to focus on high-yield assets in prime locations such as DIFC, Business Bay, and Downtown Dubai, further boosting the city’s commercial real estate sector.
“Dubai’s commercial real estate market has long been a beacon for global investors, driven by the city’s strategic location, dynamic economy, and visionary development. As we move into 2025, this sector is poised for transformative growth, reflecting broader economic trends, technological advancements, and shifts in demand,” Juss said.
Dubai commercial real estate opportunities
Juss said in 2025 the Dubais commercial real estate market will provide wealth of opportunities for investors, developers and businesses.
The city’s commitment to innovation, sustainability and global connectivity ensures a dynamic and resistant market for long-term growth, he said.
Senior employees at Retrock Real Estate said mixed-use developments will dominate the commercial real estate landscape in 2025.
“These integrated spaces, which combine residential, retail, and office components, cater to Dubai’s growing preference for convenience and sustainable urban living.
“Areas like Dubai South, Business Bay, and Expo City Dubai are at the forefront of this trend, offering self-contained ecosystems for businesses and residents alike,” he said.
But Danube Vice-Chair Thunder said that despite demand for high quality office space, commercial property this year is not expected to survive the residential sector in Dubai.
“The residential real estate will remain the dominant sector due to higher transaction volumes and continued end-user demand,” he said.
Senior executives at other developers said Dubai’s strategic location as a global trade and logistics hub will also drive demand for industrial spaces, particularly warehouses this year.
The ongoing boom in the emirate and VAE ecommerce sector, heated by a technically experienced population and sophisticated logistics infrastructure. A middle year for businesses looking for large and flexible rooms to support the supply chain.
Free zones like the Jebel Ali Free Zone (Jafza) and Dubai South are expected to increase on this front.
Commercial real estate trends
Industry experts said this year’s demand for commercial real estate, particularly high-quality office space, is directed towards customizable office systems, intelligent facilities and proximity to key business districts.
In 2025, local office spaces such as DIFC and Business Bay will continue to attract multinational companies looking for respected addresses and modern amenities, they said.
The Danube deputy chief said the demand pike will lead to rent increases of up to 20% this year.
Juss said Proptech will continue to revolutionize Dubai’s commercial real estate market this year, increasing demand and rental sweat.
“From AI-powered tenant management systems to blockchain-enabled property transactions, technology will enhance efficiency, transparency, and customer experiences,” he said.
Investor-friendly guidelines from Dubai, including the introduction of long-term visas and 100% foreign ownership to selected sectors, are also called factors that continue to attract global capital in the Emirates’ commercial real estate sector.
Sajan said the Dubai real estate boom features a combination of world-class infrastructure, a lively mix of Eastern and Western culture, a thriving hospitality and nightlife scene, and, above all, unprecedented security.
“The city has firmly positioned itself as a ‘home away from home’ for global investors, professionals, and expatriates seeking stability and long-term growth.
“Besides, geopolitical uncertainty in other regions has also further enhanced Dubai’s appeal, as people look for a safe, business-friendly environment,” the Danube Vice Chairman said.