Dubai’s office property market has demonstrated significant growth, with capital values rising 1.9% quarter-on-quarter and 9.7% year-on-year in Q3 2026, according to ValuStrat’s latest report. This marks a notable recovery in the sector, as average office values have tripled over the past five years, reaching AED 25,026 per square meter.
As the residential market stabilizes following earlier disruptions, ready-home sales have also rebounded, indicating a resilient real estate landscape in Dubai. The ValuStrat Price Index (VPI) for offices reached a record 304.6 points, reflecting a robust demand for commercial spaces.
Stabilization in Residential Market
Despite the overall positive trends in the office sector, the residential market has shown signs of adjustment. The ValuStrat Price Index for freehold residential properties recorded its first annual decline since the pandemic, falling by 4.5% year-on-year. The average capital value for a typical villa is now AED 12.9 million, down from AED 13.4 million, while apartment values have decreased to AED 1.78 million, a 6.4% drop from the previous year.
However, the report indicates that the decline in residential values has stabilized, with only marginal changes observed in the last quarter. Approximately 80% of villa communities remained stable, and the prime residential segment experienced a slight quarterly decline of 0.2%.
Ready-Home Sales Surge
In a positive turn for the residential sector, secondary ready-home transactions totaled 9,491 in Q3 2026, marking an 18.5% increase from the previous quarter. This surge reflects a growing interest among end-users capitalizing on current price levels, despite the overall transaction volume being 23.8% lower than the previous year.
Haider Tuaima, Managing Director and Head of Real Estate Research at ValuStrat, noted that the market has shown clear signs of stabilization, with a population increase of approximately 230,000 since the start of the year supporting housing demand.
Office Market Dynamics
The office market’s growth is underscored by a total stock of approximately 9.71 million square meters, with 401 ready office sales transactions recorded in Q3 2026. Business Bay emerged as the leading location for office sales, accounting for 44.2% of transactions, followed by Jumeirah Lake Towers and Barsha Heights.
Sean Swinburne, Director of Valuations at ValuStrat, emphasized the unprecedented milestones achieved in Dubai’s commercial real estate sector, attributing the tripling of office capital values to strong corporate sentiment and a constrained supply of Grade A properties.
As the market continues to evolve, the anticipated completion of new residential units remains a critical factor, with projections for 2026 estimating a record 108,134 units, although these figures may be subject to downward revisions due to ongoing construction delays.
For further insights into the dynamics of Dubai’s real estate market, refer to ValuStrat’s report.
