Key takeaways
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Record office growth: Dubai office capital values rose 9.7% year-on-year in Q3 2026, with the ValuStrat Price Index (VPI) hitting a record 304.6 points.
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Industrial boom: Warehouse capital values surged 19.6% annually, driven by e-commerce and supply chain demand, with Al Quoz growing 54.3%.
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Transaction surge: Q3 recorded 401 ready office sales, representing a 46.4% quarterly jump, with Business Bay capturing 44.2% of these deals.
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High retail occupancy: Major retail assets maintained exceptionally strong occupancy, reaching 98% for Emaar and 97% for Majid Al Futtaim.
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Expanding pipeline: New projects like Uptown Place and the Dubai CommerCity expansion are catering to the rising demand for Grade A office space.
How is the Dubai office market performing in 2026?
Dubai's commercial real estate sectors continued to post strong growth indicators during the third quarter of 2026. According to ValuStrat's Q3 2026 Dubai Real Estate Review, featured in Al Bayan, this momentum is heavily driven by escalating demand for office space, industrial warehouses, and high retail occupancy.
The office sector is witnessing record-breaking performance. Capital values for Dubai offices rose by 9.7% year-on-year, pushing the ValuStrat Price Index (VPI) to a historic high of 304.6 points against a Q1 2021 baseline. This reflects a near tripling of prices over the past five years. The average capital value reached AED 2,325 per square foot, with Downtown Dubai commanding the highest rates at AED 4,925 per square foot, while Business Bay led annual growth at 10.7%. Transactional activity also surged, with 401 ready office sales closed during the quarter—a massive 46.4% quarterly increase.
What is driving growth in the industrial and retail sectors?
Alongside the booming office market, Dubai’s industrial and logistics sector is expanding rapidly, fueled by the growth of e-commerce and the increasing importance of robust supply chains. ValuStrat data reveals that warehouse capital values jumped 19.6% year-on-year, bringing the industrial VPI to 199.6 points—effectively doubling in value over five years. The Al Quoz industrial area was a standout performer, recording an exceptional 54.3% annual capital growth rate.
In the retail segment, major shopping destinations continue to demonstrate strong resilience and appeal. Data highlighted in the report shows that commercial assets owned by Emaar achieved a 98% occupancy rate during the first half of 2026, attracting over 87.3 million visitors. Similarly, Majid Al Futtaim recorded a 97% occupancy rate. This sustained demand is prompting the development of new integrated community malls designed to cater to Dubai's expanding urban areas and lifestyle needs.
