Post by : Badri Ariffin

Dubai’s dynamic commercial real estate is on the brink of a significant transformation expected to reshape the office market by 2028. Experts foresee the development of a distinct two-tier system, distinguishing between premium Grade A office spaces and older buildings that will increasingly struggle to compete.

In 2025, Dubai’s commercial real estate sector witnessed remarkable growth, reflecting a 77.9% spike in sales value and a 35.1% rise in transaction numbers throughout the initial 11 months. Yet, in comparison to the residential market, it has not kept pace in terms of innovation, architectural quality, and building standards for over a decade.

“Since 2008, the launch of new office buildings in Dubai has been scarce,” noted Firas Al Msaddi, CEO of fäm Properties. “During the same timeframe, the residential sector experienced a complete makeover with new designs, enhanced luxury features, and modern construction codes. The commercial side has missed out—until now.”

Al Msaddi anticipates that this anticipated shift will begin around 2028, coinciding with the handover of cutting-edge Grade A office buildings. These new developments promise modern layouts, heightened efficiency, and contemporary designs that align with the expectations of major global enterprises.

“That will be the moment of truth,” he elaborated. “Tenants will gain access to modern, forward-thinking office environments, allowing for a clear comparison with older, secondary options. The divide between the old and the new will grow more pronounced.”

This change is projected to precipitate a comprehensive market recalibration, emphasizing quality as the pivotal factor. “The entire commercial landscape will undergo a reset focused on design, efficiency, and relevance,” Al Msaddi added. “A shift will put pressure on older structures while elevating demand and rental prices for premium Grade A offices, establishing a distinctive two-tier market.”

He cited Vision Tower in Business Bay as a prime example of the existing demand for authentic Grade A office spaces in Dubai. “Vision Tower consistently outperforms the market, catering to esteemed corporate tenants,” he stated. “With minimum occupancy starting at half a floor, it effectively attracts serious businesses, showcasing the solid demand for true Grade A spaces.”

The greater Dubai real estate market has also reported record achievements in 2025, particularly within the residential sector. A total of 197,263 residential transactions valued at AED 624.1 billion were logged, exceeding previous yearly records even with a month left in the year.

The commercial real estate segment has displayed substantial growth as well. Data from DXBinteract indicates that the total commercial sales value reached AED 15.5 billion from January to November 2025, a 77.91% increase compared to AED 8.7 billion during the same period last year. Transaction volumes rose to 5,364 deals, up 35.1% in comparison to 2024.

Offices led the commercial sector with AED 11.2 billion in sales across 4,012 transactions, followed by retail shops at AED 3.8 billion from 1,321 deals. Contributions from showrooms, warehouses, workshops, clinics, and specialized properties were smaller.

As Dubai embarks on this next stage of commercial growth, industry experts believe that the forthcoming years will be pivotal. With Grade A offices set to raise the bar, the city’s office market is ready for its most significant transformation in nearly twenty years.

#Global News #Business News