Dubai‘s commercial real estate sector is approaching a transformation that will create a two-tier office market by 2028, according to industry analysis.
Firas Al Msaddi, CEO of fäm Properties, said the emirate has not seen a generation of office buildings since 2008, while the residential market has undergone transformation in design, architecture, standards and construction codes.
“Since 2008, Dubai has not seen a real new generation of office buildings. In contrast, the residential market went through a major transformation – new design language, new architecture, new luxury standards, and new construction codes. The commercial sector did not have a reset, but that’s now on the way. The first wave of next-generation Grade A offices will only start handing over from 2028 onward,” Al Msaddi explained
Dubai commercial real estate sales value jumps 77.9% in first 11 months of 2025
Commercial real estate has grown 77.9 per cent in sales value and 35.1 per cent in transaction volume over the first 11 months of 2025. Total sales value reached AED15.5 billion, compared to AED8.7 billion in the same period last year. Transaction volume rose from 3,970 deals to 5,364.
Al Msaddi said the delivery of Grade A office buildings from 2028 will create a dividing line in the market, with older buildings facing pressure as tenants gain access to options.
“That will be the moment of truth, as we see how secondary offices perform when tenants finally have modern, efficient, architecturally relevant options,” he said.
“The gap between old and new will widen, and the entire commercial sector will reprice itself around quality, creating a two-tier office market, with older buildings facing pressure as new Grade A properties command premium pricing.”
Grade A office buildings to create two-tier market in Dubai by 2028, says fäm Properties CEO
Al Msaddi pointed to Vision Tower in Business Bay as evidence of demand for Grade A office space in Dubai.
“It has consistently outperformed the market because it attracts real, established corporates,” he said. “The smallest unit is a half-floor, which naturally filters for serious companies, and the performance of that building tells you exactly how strong true Grade A demand really is.”
Office properties accounted for the bulk of commercial real estate transactions between January and November 2025. Sales value reached AED11.2 billion across 4,012 transactions.
Shops generated AED3.8 billion in sales value across 1,321 transactions. Showrooms recorded AED70.2 million across 13 deals, while warehouses totalled AED24.4 million across seven transactions.
The Dubai residential market recorded 197,263 transactions worth AED624.1 billion through November, surpassing the previous full-year results with a month remaining in 2025.
Data from DXBinteract shows commercial real estate has not matched the pace of development seen in the residential sector over 15 years.
Al Msaddi said the commercial sector’s lag in adopting design and construction quality standards will end with the delivery of Grade A buildings from 2028.
