CRC has published its Q1 2026 Commercial Property Market Report, highlighting a clear shift in Dubai’s commercial real estate sector toward a more mature, value-led phase. The report shows that total sales value reached AED 37.9 billion in Q1 2026, while office segment values increased by 73% quarter-on-quarter.
Although transaction volumes recorded a slight 3% decline to 3,619 deals following a record-breaking end to 2025, overall market fundamentals remain strong. The data indicates a transition from volume-driven activity to higher-value investments, with sustained capital appreciation across key segments.
In the office market, performance was particularly strong. Transaction volumes rose by 2% to 1,565 deals, while total value surged 73% quarter-on-quarter to AED 8.2 billion. For the first time, secondary market office prices exceeded AED 2,000 per sq ft, averaging AED 2,023. Key activity hubs included Al Sufouh, Business Bay, and JLT.
The retail sector also delivered significant growth, with sales values increasing by 162% year-on-year. Demand continues to shift toward premium, community-focused retail spaces, with Jumeirah Village Circle leading in transaction activity, followed by Motor City.
Off-plan commercial assets showed strong momentum, with transaction volumes rising 26% and total value increasing by 158%, now representing 78% of all commercial transactions. Meanwhile, industrial and warehouse assets continued to see robust demand, supported by a 73% year-on-year and 72% quarter-on-quarter rise in leads, reflecting sustained institutional interest in logistics infrastructure.
In the leasing market, tenant behavior is increasingly driven by liquidity considerations. While four-cheque payment structures remain dominant at 55%, one-cheque payments declined by 13%, indicating a growing preference among corporates to preserve cash flow flexibility.
Looking ahead, CRC maintains a positive outlook for 2026, supported by the UAE’s projected 5.6% real GDP growth, the AED 1 billion economic stimulus package, and continued momentum from the D33 economic agenda. The report concludes that Dubai’s commercial real estate market is entering a structurally stronger phase, driven by foreign investment, diversification, and long-term demand for physical commercial assets.
