Dubai's Office Market Poised for a Major Shift by 2028

The commercial real estate landscape in Dubai is on the brink of a significant evolution that will alter the office market by 2028. Experts suggest a distinct two-tier structure will emerge, where contemporary Grade A office spaces will dominate, while older buildings experience increased competitive challenges.

Despite impressive growth in 2025—with a 77.9% rise in sales value and a 35.1% increase in transactions—Dubai’s commercial sector has lagged behind the residential market in terms of innovation and design for over a decade.

“Since 2008, no noteworthy new generation of office buildings has been launched in Dubai,” says Firas Al Msaddi, CEO of fäm Properties. “Meanwhile, the residential sector underwent a complete makeover, embracing modern aesthetics and construction standards. The commercial space is now set for its long-awaited transformation.”

From 2028, the first wave of next-gen Grade A offices is expected to debut, featuring innovative designs and the efficiency sought after by multinational companies.

“This is a critical moment,” he noted. “Tenants will soon have access to offices that are modern and equipped for the future. As this unfolds, the differences between older and newer properties will become increasingly apparent.”

This anticipated change will initiate a broad market reevaluation, with quality becoming the decisive factor. Al Msaddi believes, “The whole commercial industry will adjust its focus on design and operational efficiency, putting older constructions under pressure, while premium Grade A spaces will be in high demand.”

Highlighting the strong demand for genuine Grade A spaces, he pointed to Vision Tower in Business Bay as a benchmark. “Vision Tower consistently exceeds market performance by attracting established corporate tenants,” he stated. “Its half-floor minimum size naturally appeals to serious businesses, showcasing the robust demand.”

The broader real estate market in Dubai has already set records in 2025, especially within residential transactions. There were 197,263 deals valued at AED 624.1 billion, breaking the full-year record with time to spare.

The commercial sector is also thriving, with total sales reaching AED 15.5 billion from January to November 2025—a 77.91% increase from AED 8.7 billion the previous year, with 5,364 transactions recorded.

Office sales lead this segment, amounting to AED 11.2 billion over 4,012 transactions, followed by retail shops at AED 3.8 billion through 1,321 deals. Contributions also came from showrooms, warehouses, clinics, and other specialized properties.

As Dubai gears up for this transformative phase, industry leaders forecast that the coming years will be critical. With Grade A offices expected to set new benchmarks, the city’s office market is ready for its most transformative shift in nearly 20 years.