Dubai: Dubai’s office property market recorded an 11.7 per cent increase in sales transactions during the third quarter of 2026, signalling renewed activity among smaller investors despite a decline in the overall value of commercial property deals.
According to a report released by CRC Property on Tuesday, office transactions increased to 1,123 units between July and September, while Downtown Jebel Ali emerged as the emirate’s busiest office market.
Dubai recorded 2,789 commercial property sales transactions during the quarter, down just 1.8 per cent from the previous quarter. This marked a significant improvement from the 21.5 per cent quarterly decline recorded in the second quarter.
However, the total value of commercial property sales fell 25.6 per cent to Dh18.04 billion, reflecting a shift towards smaller transactions.
Office Sales Rise as Deal Values Decline
Although the number of office transactions increased, their combined sales value dropped 42 per cent quarter-on-quarter to Dh4.35 billion.
The average office transaction value declined to approximately Dh3.87 million, suggesting greater participation from smaller investors rather than large institutional buyers.
Despite the quarterly decline, office sales value remained 40.4 per cent higher than in the same period last year.
Behnam Bargh, managing director of CRC Property, said the market was showing signs of stabilisation rather than a full recovery.
“Q3 was a quarter of stabilisation rather than recovery. Deal counts held firm, but the mix shifted toward smaller transactions,” Bargh said.
He advised investors and businesses to focus on realistic pricing and quality properties capable of generating reliable income.
Downtown Jebel Ali Becomes Dubai’s Leading Office Market
Downtown Jebel Ali emerged as Dubai’s most active office location in the third quarter, accounting for nearly 30 per cent of all office transactions.
The district overtook Business Bay, indicating a shift in investor interest towards alternative commercial locations.
Jumeirah Lakes Towers ranked third, recording 162 transactions — an increase of 47.3 per cent.
Meanwhile, average secondary office selling prices declined by 1.2 per cent to Dh1,930 per square foot. This was a smaller decrease than the 3.4 per cent drop recorded in the second quarter.
Commercial Land Sales Reach Dh6.81 Billion
Commercial land transactions totalled Dh6.81 billion in the third quarter, accounting for approximately 38 per cent of the overall value of commercial property sales.
Ashley Sonnenberger, industrial and logistics manager at CRC Property, said demand for industrial land was being driven by investors and businesses seeking to secure locations for the long term.
“With local authorities no longer releasing new land, investors and occupiers seeking long-term industrial positions are securing sites directly rather than waiting for fresh allocations,” Sonnenberger said.
Retail Buyer Enquiries Record Strongest Growth
CRC Property reported a 15 per cent quarter-on-quarter increase in buyer enquiries across the commercial property market.
Retail recorded the strongest growth, with enquiries rising 34 per cent during the quarter.
The figures point to continued interest in selected commercial property segments, even as the total value of transactions declined.
More Businesses Choose Instalment-Based Lease Payments
The report also highlighted a change in how businesses are paying commercial rents.
Instalment-based payment plans accounted for 83 per cent of CRC Property’s commercial leases in the third quarter, up from 73 per cent in the second quarter.
Meanwhile, the share of leases paid through a single annual cheque fell from 27 per cent to 17 per cent.
The shift suggests that businesses are increasingly prioritising cash-flow flexibility when negotiating commercial leases.
Market Focus Shifts Towards Income-Generating Assets
Bargh said investors were becoming more selective as Dubai’s commercial property market adjusted to changing economic conditions.
The latest figures show that transaction volumes have held relatively steady, even as overall sales values declined. Increased activity among smaller investors, demand for office space in alternative locations and interest in industrial land are helping sustain market activity.
The report indicates that realistic pricing, quality assets and reliable rental income are becoming increasingly important considerations for investors navigating Dubai’s commercial property market.
