Why 2026 Is the Best Time to Invest in Dubai Commercial Property

January 6, 2026
Real Estate
(0)
07 mins

Why 2026 Is the Best Time to Invest in Dubai Commercial Property

The commercial real estate market in Dubai is at a major crossroads and 2026 could prove to be a critical time to invest in this sector.

Recently, Dubai has experienced tremendous growth driven by strong economic performance, increased business activity, and government reform efforts.

In addition, Dubai is rapidly emerging as an international center of commerce and trade.

Therefore, new opportunities will continue to emerge due to a combination of limited supply of high-quality office space, high demand for industrial and logistics space, and growing interest in mixed-use development.

Increasingly high rental rates combined with rapid occupancy increases, combined with favourable investor policies, make this a perfect time to invest in Real estate in Dubai.

Limited Office Space Availability

The availability of Class A office space has declined significantly over the last few years because of high demand from companies seeking Class A office space.

As reported by CBRE, Class A office occupancy rates increased from approximately 90% by the end of Q2 2025 to 94% by the close of Q3 2025.

The continued growth of demand for office space in the UAE is pushing both rental and capital values of Class A office buildings higher.

During the same period, Class A office sales reached approximately AED 3.1 billion during 2025 representing a year-over-year increase of approximately 93%.

Office space sales during Q3 2025 alone totaled AED 30.38 billion representing 18% increase over the previous quarter and an approximately 31% increase over Q2 2025.

Given the dramatic increase in occupancy levels for Class A office space in some of Dubai’s (and the entire region’s) most desirable locations (DIFC, Business Bay & Dubai Marina) and the resulting high rental rates and values, it is reasonable to expect that the period from 2025 through 2027 represents a very attractive investment opportunity in many parts of Dubai.

Metric	Value / Figure	Time Period	Change / Insight
Total Commercial Property Sales	AED 30.38 billion	Q3 2025	31% increase year-on-year
Office Property Transactions Value	AED 3.1 billion	2025	93% increase year-on-year
Number of Office Units Transacted	1,153 units	2025	Reflects strong transactional activity
Quarter-on-Quarter Growth (Office Sales)	—	Q3 2025	18% increase vs. previous quarter
Grade A Office Occupancy Rate	~94%	Q3 2025	Indicates tight supply
Key High-Demand Districts	DIFC, Business Bay, Dubai Marina	Current	Limited availability of premium office space

Capital Growth and Rising Rental Yields

Demand for office space in Dubai’s main business districts is increasing. The Prime Office Space market is expected to see 8% to 12% growth on average during the year 2025, which indicates the current and future potential of this sector.

The rental rates for the major office buildings throughout Dubai have seen rapid growth. Some of the highest-quality buildings have seen year-over-year rental growth of approximately 20%.

Secondary office property sales are increasing rapidly, with an average price of AED 1,685 per square foot being achieved as of Q3-2025.

This market data suggests that investors who purchase office property now will be able to achieve strong short-term and long-term rentals.

Metric	Value / Range	Time Period	Market Implication
Prime Office Space Market Growth	8% – 12%	2025 (Forecast)	Indicates strong demand and sector expansion
Year-on-Year Rental Growth (Prime Offices)	~20%	2024–2025	Higher rental yields for investors
Average Secondary Office Sale Price	AED 1,685 per sq. ft.	Q3 2025	Rising capital values in non-prime assets
Demand Trend	Increasing	Current	Supports sustained price and rental growth
Investment Outlook	Strong rental returns & capital appreciation	Near to medium term	Attractive entry point for investors

Government Reforms and Investor-Friendly Policies

The Dubai Government has implemented various reforms aimed at encouraging Investment into Commercial Real Estate through several means including; the ability for Foreign Owned Companies to operate on the mainland without losing the benefits of being in a Free Zone, as well as, the ability for Free Zone Companies to apply for onshore permits making the process of starting and operating a business much easier.

Another incentive for Foreign Investors is the offering of long-term Residency Programs such as the Golden Visa to International Entrepreneurs, which has contributed to an increase in demand for Commercial Properties.

With the ability to acquire Freehold ownership of Commercial Properties in key Business Districts, Investors can maintain complete control of their asset(s) and offer security and greater flexibility to their Investment Properties allowing Foreign Investors to feel confident about their commitment to a long-term investment.

Reform / Policy	Key Benefit for Investors
Mainland Operations for Foreign Firms	Access to onshore markets without losing Free Zone benefits
Onshore Permits for Free Zone Companies	Easier business expansion and operations
Golden Visa Program	Long-term residency and investor stability
Freehold Commercial Ownership	Full ownership and asset control in prime districts
Investor-Friendly Regulations	Simplified processes and reduced entry barriers

Growth in Industrial and Logistics Properties

Dubai’s Industrial and Logistics Sector continues to expand rapidly, driven by the growing demand for E-commerce, as well as increased International Trade activity.

This has led to a high demand for Warehousing and Storage facilities located in close proximity to major Trading Hubs, including the Jebel Ali Free Zone (JAFZA) and Dubai South.

As a result of this rapid expansion of Dubai’s Industrial and Logistics Sector, per square foot Rental Prices have risen dramatically, with some areas seeing more than 40% year-on-year increases, which represents a very significant increase compared to previous years.

Given these trends, it can be seen that investing in Industrial and Logistics Assets today provides not just good Rental Returns but also potentially very strong Long-Term Capital Appreciation.

Investors who position themselves properly in this growing Sector will benefit from continued growth in Dubai’s Logistics Sector.

The Rise of Mixed-Use Developments

There is an increase in the demand for mixed-use developments from both tenants and investors.

By providing office, retail, and residential uses in one integrated solution, these projects address the needs for walking and connectivity while offering a myriad of amenities that improve tenant experience.

Some of the modern features of a property that make it desirable are digital technology, sustainability components, and energy-efficient building design. Properties that are certified by ESG have received a premium value; thus, providing immediate and future benefits to investors.

By having a portfolio consisting mainly of mixed-use smart properties, investors can capitalize on the expected growth in this sector over the next few years, presenting a new opportunity for commercial property investors.

Key Market Dynamics Driving 2026 Investments

Through continued growth and investment opportunities in commercial space in Dubai, all three commercial categories will see a surge in demand due to limited availability.

Therefore, the Dubai commercial property market will continue to experience rapid growth.

An example of continued growth is the rising cost of office rentals; the acceleration of industrial property expansions; and high-end designs and finishes incorporated into mixed-use buildings attracting large firms and talent.

The continued growth of Dubai’s commercial real estate market is attributed to the city’s position as a major business trade zone in the region.

Because Dubai serves as a direct conduit for accessing the Middle East, North Africa, and Asia, continuing to be a major global commerce centre and a main attraction for foreign direct investment will help facilitate growth in Dubai’s Commercial Properties segment through 2026.

In addition, by allowing foreign investors to participate in both short-term (rental income) and long-term (appreciation) asset value creation, investor participation will further facilitate growth in Dubai’s commercial real estate sector.

Also Read: YoY Performance of Dubai’s Real Estate Market in 2025: Prices, Supply & Outlook

Potential Risks to Consider

Although the outlook is optimistic, there are some risks associated with this industry that must be considered by investors.

The delivery timeline for new office supply could be extended to 2027, which may create downward pressure on rental increases if demand does not match the anticipated new supply.

In addition, changes in global markets and macroeconomic forces may impact occupancy rates and investor confidence in future leasing activity.

Other operational expenses or costs (e.g., maintenance and service fee) must be taken into consideration when making investment choices.

Investors that take into consideration all of these risks are better equipped to understand the market and find viable investment opportunities that are in alignment with their growth objective and the realities of the market today.

The Bottom Line

Dubai is experiencing a period of unparalleled growth in the commercial property market. 2026 is being marketed as an opportunity for investors to purchase quality commercial real estate now, when prices are still relatively low.

Many positive economic factors (such as limited availability of premium office space, increasing rental rates, strong demand for industrial and logistics real estate, and rapidly evolving mixed-use developments) are supporting the commercial real estate market through the stability of income and long-term appreciation of capital.

By concentrating on high-quality commercial real estate, as well as emerging sectors and new developments, investors should be able to receive attractive yields and continue with the appreciation of their existing assets.

With Dubai continuing to attract international companies, talent, and capital, now will provide an opportunity to invest in one of the fastest-growing and most dynamic real estate markets in the region.

For more information on investing in Dubai real estate, get in touch with our highly experienced professionals at TAQ Global Properties: