Dubai’s Commercial Rents Fall in July Despite Market Activity
Strong Demand for Dubai Offices and Commercial Properties from Investors and Tenants
Dubai’s commercial property market has witnessed a threefold increase in average sales prices over the past 12 months, according to new data. The typical deal now stands at Dh14.41 million, up from Dh4.27 million in July 2024, Allsopp & Allsopp reports.
The surge is driven by rising land values and increased property valuations. However, new rental contracts in July showed a decline in average rates, indicating a mixed trend in the commercial sector.
“This sharp rise underscores a market where investors are not only active but increasingly targeting premium, strategically located properties, driving competition and boosting overall asset values,” the report notes.
Commercial Property Rents
On the rental side, average lease rates for commercial properties in July fell to Dh530,200, down from Dh1.69 million the previous year, highlighting a divergence between sales and rental trends in Dubai’s commercial market.
“This trend suggests an opportunity for tenants to secure favorable deals now, before rates inevitably rise in response to growing demand and limited supply,” the report notes.
In July, overall commercial sales and leasing transaction values surged 271% compared to June, while transaction volumes increased by 75%. Year-on-year, the growth was even more pronounced, with a 283% rise in transaction value and a 40% increase in volume from July 2024 to July 2025, the report adds.