Dubai's commercial real estate market demonstrated remarkable resilience in the first half of 2026, with transaction values rising 8.5% year-on-year to AED 65.23 billion despite navigating challenging geopolitical conditions in the West Asia region. According to Anarock, deal volumes also showed strong growth, rising nearly 13% to 6,487 transactions compared to 5,754 recorded in H1 2025. As Anuj Kejriwal, CEO–Retail and CEO–Europe, Middle East and Africa at Anarock Group, notes, "Dubai's commercial real estate market has once again displayed its remarkable external shock-absorbing abilities." This performance underscores Dubai's ability to attract investment during periods of regional uncertainty, with transaction activity staying firmly in growth territory despite brief sentiment challenges early in the year. The commercial segment, comprising office, retail, land, hotel apartments, hotel rooms, whole buildings and industrial assets, recorded this combined transaction value of AED 65.23 billion in H1 2026.
The office segment emerged as the primary driver of Dubai's commercial real estate performance, with transaction values surging nearly 200% from AED 5.28 billion in H1 2025 to AED 15.81 billion in H1 2026. Office transaction volumes also increased significantly by 38% year-on-year to 2,571 deals, while average office prices climbed 85% to AED 3,202 per square foot. As Kejriwal explains, "The office segment was the standout performer of H1 2026, with office transaction volumes rising 38% Y-o-Y via 2,571 deals, and transaction value surging nearly 200% to AED 15.81 billion from AED 5.28 billion in H1 2025. This points to intensifying demand for Grade A office space amid constrained supply in key business districts and free zones." The performance indicates that investors are increasingly willing to pay a premium for high-quality, income-generating office properties, with the strength coming against a challenging regional backdrop.
The retail segment recorded a sharp uptick with transaction values jumping 174.3% to AED 3.71 billion from AED 1.35 billion in H1 2025. According to Anarock, a resurgent consumer economy and growing investor interest in well-located retail formats led to a 54% rise in average retail prices to AED 3,486 per square foot. As Kejriwal notes, "Retail assets also recorded a sharp uptick, with transaction volumes rising 56% Y-o-Y to 853 deals and transaction value more than doubling, up 174% to AED 3.71 billion. Average retail prices rose 54% Y-o-Y to AED 3,486/sq.ft. thanks to a resurgent consumer economy and growing investor interest in well-located retail formats." This recovery demonstrates the sector's ability to attract investment despite regional challenges, with the trend attributed to strengthening consumer and business confidence along with increasing investor interest in prime retail locations.
Dubai's luxury residential market recorded exceptional performance in July 2026, with 244 off-plan sales priced above AED 5 million generating a combined transaction value of AED 3.42 billion. According to analysis by Keturah using data from DXBinteract, the average value of these transactions stood at AED 14 million, with apartments accounting for 151 transactions worth AED 2.3 billion and villa sales generating AED 1.1 billion. The data indicates continued demand beyond ultra-high-value transactions, with significant activity in the AED 10-20 million and AED 20-50 million segments. Over the preceding three months, developers recorded 942 off-plan residential transactions above AED 5 million worth AED 12.11 billion, while ready properties also recorded 43 transactions above AED 5 million in July, valued at AED 552.8 million.
On a quarterly basis, Q1 2026 emerged as the strongest quarter for Dubai's commercial real estate market, with transaction value estimated at AED 40.75 billion, up over 40% year-on-year. However, Q2 2026 saw natural moderation with transaction volumes down about 22% and transaction value down close to 40% sequentially. As Kejriwal reports, "Q2 2026 (Apr-Jun) saw a natural moderation after this exceptional start, with transaction volumes down about 22% and transaction value down close to 40% on a sequential Q-o-Q basis. On a year-on-year basis, Q2 2026 volumes were broadly stable, down just about 1% compared to Q2 2025 and transaction value was around 21% lower." Despite moderation, average price per square foot in Q2 2026 rose 34% year-on-year to AED 3,186 per square feet, with Kejriwal noting that "Dubai's commercial real estate buyers remain prepared to pay a premium for prime, income-generating assets."
A notable trend emerged in H1 2026 as investors increasingly favored income-generating assets over land banking opportunities. Land transaction volumes fell 29.3% year-on-year to 941 deals, while transaction value declined 9.3% to AED 33.19 billion from AED 36.60 billion in H1 2025. This trend suggests that investors are moving away from land banking towards commercial assets that offer immediate income potential. Other segments, including hotel apartments and rooms, buildings and industrial assets, recorded a 5.3% increase in transaction volumes to 2,053 deals, though transaction value declined 17.9% to AED 11.33 billion. Despite the moderation in Q2 2026, the overall market outlook remains positive, with Kejriwal noting that "tight Grade A office supply, rising rents and steady occupier demand are expected to support the market's underlying growth."
