Dubai's Office Market Poised for a Two-Tier System by 2028

Post by : Bianca Suleiman

The commercial real estate landscape in Dubai is on the verge of a major overhaul that will redefine the office market by 2028. Experts foresee a significant transition towards a two-tier system, where cutting-edge Grade A developments are valued at a premium, while older office spaces will struggle amidst increasing competition.

While Dubai's commercial real estate has experienced remarkable growth, boasting a 77.9% increase in sales value and a 35.1% rise in transaction volumes for the first 11 months of 2025, it has been overshadowed by the residential sector's advances in design, innovation, and construction standards.

“Since 2008, the launch of a new generation of office buildings in Dubai has been non-existent,” stated Firas Al Msaddi, CEO of fäm Properties. “In contrast, the residential sector has undergone a complete transformation, embracing modern architectural styles and high standards. The commercial sector is now catching up.”

As Al Msaddi predicts, this anticipated transformation will start taking shape in 2028 with the completion of next-gen Grade A office buildings. These properties will feature advanced layouts, increased efficiency, contemporary architectural designs, and the high standards required by multinational corporations.

“This will be a pivotal moment,” he remarked. “Tenants will gain access to modern, future-proof office environments, which will highlight the disparities in performance between older and contemporary offices.”

This shift is likely to initiate a recalibration across the market, with quality becoming the key differentiator. “The commercial sector will be redefined based on design and practicality,” added Al Msaddi. “A clear two-tier market will emerge, as premium Grade A offices attract higher rents and demand.”

Al Msaddi pointed to Vision Tower in Business Bay as a prime example of the current demand for top-tier office spaces in Dubai. “Vision Tower consistently outperforms the market due to its appeal to established corporate clients,” he noted. “With a minimum unit size of half a floor, the building primarily attracts serious businesses, showcasing the strong demand for authentic Grade A spaces.”

The Dubai real estate market is already achieving unprecedented results in 2025, particularly in the residential domain, which recorded 197,263 transactions worth AED 624.1 billion, breaking previous records with a month remaining in the year.

Commercial real estate also experienced a surge, as data from DXBinteract indicated a total commercial sales value of AED 15.5 billion from January to November 2025, marking a 77.91% increase from AED 8.7 billion during the same period the year before. Transaction volumes increased significantly to 5,364 deals, a 35.1% rise from 3,970 transactions in 2024.

Offices led the commercial segment with AED 11.2 billion in sales through 4,012 transactions, followed by retail spaces achieving AED 3.8 billion from 1,321 deals. Other sectors, including showrooms and workshops, contributed smaller amounts.

As Dubai gears up for the next stage in its commercial development, industry insiders believe that the coming years will be critical. With Grade A offices expected to set new benchmarks, the city's office market is on track for one of its most significant makeovers in two decades.