Dubai's Office Market Poised for Transformation by 2028

Dubai’s commercial real estate landscape is on the brink of a significant evolution that will reshape the office market by 2028. Experts predict the rise of a two-tier system, where modern Grade A office towers will command premium rates, leaving older structures facing competitive challenges.

Despite remarkable performance in 2025—highlighted by a 77.9% rise in sales value and a 35.1% boost in transaction volumes—Dubai's commercial sector has trailed its residential counterpart in aspects of innovation, design, and construction for over a decade.

“Dubai hasn’t launched a genuinely new generation of office buildings since 2008,” remarked Firas Al Msaddi, CEO of fäm Properties. “In contrast, the residential market has embraced a transformation with new architectural styles and elevated luxury standards. The commercial market missed that reset, but change is underway.”

Al Msaddi foresees this shift beginning in 2028, when the initial flow of next-gen Grade A offices is expected to be completed. These spaces will feature modern layouts, improved efficiency, and cutting-edge designs, raising the bar for global corporations.

“This will be the turning point,” he added. “Tenants will gain access to innovative, future-ready office environments. The performance of older offices will likely decline in comparison. The divide between outdated and contemporary offices will expand significantly.”

This transition is set to prompt a broad reevaluation of pricing in the market, with quality emerging as the core differentiator. “The commercial sector will align itself with design, efficacy, and relevance,” noted Al Msaddi. “As older offices face pressure, premium Grade A properties will attract higher rents and increased demand, solidifying a two-tier market.”

He pointed to Vision Tower in Business Bay as an example of current demand for true Grade A office space in Dubai. “Vision Tower consistently outperforms the market due to its appeal to established companies,” he stated. “With a minimum unit size of a half-floor, it attracts serious tenants, showcasing the strong demand for authentic Grade A locations.”

The wider Dubai real estate market has also achieved record successes in 2025, especially within the residential sector. A total of 197,263 residential transactions worth AED 624.1 billion were recorded, exceeding the previous annual record with a month still left.

The commercial real estate segment has demonstrated strong growth as well. Data from DXBinteract indicates that total commercial sales reached AED 15.5 billion from January to November 2025, representing a 77.91% rise from AED 8.7 billion in the same timeframe last year. Transaction volumes surged to 5,364 deals, a 35.1% increase over the 3,970 transactions in 2024.

Offices led the commercial market with AED 11.2 billion across 4,012 transactions, followed by retail shops at AED 3.8 billion from 1,321 deals, with smaller contributions from clinics, workshops, and specialized properties.

As Dubai gears up for the next chapter in its commercial journey, industry experts believe that the forthcoming years will be crucial. With Grade A offices set to elevate standards, the city's office market is on the verge of its most significant evolution in nearly two decades.