135.6 billion dirhams in commercial real estate sales in Dubai during 2025

Engel & Völkers Middle East, the company specialized in providing brokerage services in the field of luxury residential and commercial real estate in the world, issued its annual report on the real estate market for the year 2025, which highlighted this year as a turning point in the development of the real estate sector in Dubai, as it witnessed unprecedented levels in the volume and value of transactions, in addition to the shift in market dynamics.

The commercial real estate market in Dubai achieved strong performance in 2025, supported by the expansion of commercial activity, the relocation of corporate headquarters, and strong and continuing levels of demand from investors.

Commercial real estate sales amounted to 135.6 billion dirhams with 13,175 thousand transactions, led by the office sector, recording an increase in the number of transactions by 54.5% on an annual basis, while the total value of sales doubled. Engel & Völkers indicates that demand is concentrated in commercial areas with good transportation and service networks, which reflects tenants’ preference for reliable infrastructure, modern offices, and long-term operational stability. The growing interest in offices under construction reflects confidence in Dubai’s commercial growth path and the city’s position as a regional hub for doing business.

The continued confidence of investors and end users was strongly demonstrated in 2025, as the residential real estate sales market in Dubai reached record levels with total transactions rising to 202,349 thousand transactions, with a total value of 546.8 billion dirhams. Most of the momentum was attributed to apartment activity, which accounted for 83% of total transactions, while villas and townhouses maintained strong performance in many well-known and new residential complexes, indicating the breadth and flexibility of demand in the market.

The report indicated that off-plan sales transactions constituted 64.8% of total residential real estate sales in 2025, which confirms investors’ confidence in real estate projects in Dubai.

The company expects Dubai to begin the year 2026 with strong activity, as the market moves from sharp acceleration to stabilizing gains, increasing participation, and deliberate growth. Results are expected to become more diverse rather than broad-based outstanding performance, driven by location quality, infrastructure maturity, property developer efficiency, and quality of life over the long term.

The migration of high-net-worth individuals remains a structural force stimulating growth, especially in the luxury real estate market, which strengthens Dubai’s position as a global destination for high-net-worth individuals seeking stability, a comfortable lifestyle, and the preservation of their capital in the long term.

CEO of Engel & Völkers Middle East, Daniel Hadi, said: “2025 was a pivotal year for the real estate market in Dubai, as it witnessed exceptional growth and high reliability, and constituted a turning point in the path of the market’s development. Dubai continues to attract companies, capital and experienced professionals from around the world, supported by its political stability, competitive tax environment, world-class infrastructure, and a clear long-term vision. Today, the maturity of the market is clearly evident with demand that includes a wide segment of end users and investors in well-known residential complexes and emerging areas alike.”