Dubai's commercial property market recorded its strongest first-half performance on record in 2026, with sales rising 183% from a year earlier and exceeding the total value recorded in all of 2025, according to a research report by W Capital Real Estate Brokerage.

The brokerage, citing Dubai Land Department data, said commercial property sales, including offices and retail units, reached AED19.5 billion ($5.3 billion) through 3,415 transactions in the first six months of 2026, up from AED6.9 billion across 2,472 deals in the corresponding period of 2025.

The first-half total also exceeded the AED18.1 billion in commercial property sales recorded during the whole of 2025 by 7.7%, reflecting growth in the value of traded assets as well as sustained demand for commercial space.

The average commercial property transaction value increased to AED5.7 million in the first half from AED2.8 million a year earlier, which W Capital attributed to stronger demand for higher-value assets and increased participation by institutional investors.

Office properties accounted for the largest share of activity, generating AED15.8 billion, or more than 81% of total commercial sales value, through 2,569 transactions. Retail units recorded AED3.7 billion in sales across 846 deals.

Off-plan office sales reached AED13 billion through 1,668 transactions, compared with AED2.7 billion for completed offices. Off-plan retail units generated AED2.5 billion, while completed retail properties recorded AED1.1 billion in sales.

W Capital said the strong performance of off-plan commercial assets reflected investor confidence in future demand for office space and developers' focus on new projects offering modern design, sustainability features and smart technologies.

Business Bay remained Dubai's leading office market, recording AED8 billion in sales through 814 transactions, accounting for more than half of total office sales value during the first half.

The Second Commercial Centre ranked second with AED1.6 billion in sales, followed by TECOM Site A with AED1.4 billion, Dubai Maritime City with AED1 billion, and Jumeirah Lake Towers with AED910 million.

W Capital Chairman Walid Al Zarooni said the boom in commercial real estate is not a short-term speculative cycle but rather a direct result of the continuous expansion of Dubai's corporate base, rising employment levels, business growth, and the relocation of new international companies to the emirate.

"The commercial property market has entered a new phase in which institutional demand has become one of the primary drivers of real estate growth," stated Al Zarooni.

The relocation of investment funds, banks, credit rating agencies and international financial institutions to Dubai or the expansion of their existing regional headquarters demonstrates that the emirate has evolved beyond being merely a gateway to regional markets into a genuine operational base for managing businesses, capital, and specialised talent.

The expansion of investment funds, banks, credit rating agencies and other financial institutions in Dubai underscored the emirate's growing role as a regional business and investment hub.

Al Zarooni also said long-term leasing by large companies provides office assets with more stable cash flows, making them attractive to investors seeking recurring income..-TradeArabia News Service