Smaller Investors Return To Market As Dubai Office Sales Jump In Q3
The emirate recorded 2,789 commercial property sales transactions during the quarter, down just 1.8 per cent from the previous three months, marking an improvement from the 21.5 per cent quarterly decline recorded in Q2.
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However, the total value of commercial sales fell 25.6 per cent to Dh18.04 billion, reflecting a shift towards smaller property transactions.
Office sales increase despite lower transaction values
Office transactions rose 11.7 per cent quarter-on-quarter to 1,123 units, while their total sales value declined 42 per cent to Dh4.35 billion.
The average office transaction value fell to approximately Dh3.87 million, reflecting growing participation from smaller investors.
Despite the quarterly decline, office sales value remained 40.4 per cent higher than in the same period last year.
Behnam Bargh, Managing Director of CRC Property, said the market was showing signs of stabilisation rather than a full recovery.
“Q3 was a quarter of stabilisation rather than recovery. Deal counts held firm, but the mix shifted toward smaller transactions,” Bargh said.
He advised investors and occupiers to focus on realistic pricing and quality income-generating properties.
Downtown Jebel Ali overtakes Business Bay
Downtown Jebel Ali emerged as Dubai's most active office location during the third quarter, accounting for nearly 30 per cent of all office transactions.
The district overtook Business Bay, reflecting a shift in investor interest towards alternative office locations.
Jumeirah Lakes Towers ranked third, recording 162 transactions, an increase of 47.3 per cent.
Meanwhile, average secondary office selling prices declined by 1.2 per cent to Dh1,930 per square foot, a smaller decrease than the 3.4 per cent fall recorded in the second quarter.
Industrial land sales reach Dh6.81 billion
Commercial land transactions reached Dh6.81 billion during the third quarter, accounting for approximately 38 per cent of total commercial property sales value.
Ashley Sonnenberger, Industrial and Logistics Manager at CRC Property, said demand for industrial land was being driven by investors and businesses seeking to secure long-term locations.
“With local authorities no longer releasing new land, investors and occupiers seeking long-term industrial positions are securing sites directly rather than waiting for fresh allocations,” Sonnenberger said.
Retail leads growth in buyer enquiries
CRC Property reported a 15 per cent quarter-on-quarter increase in buyer enquiries, with retail enquiries recording the strongest growth at 34 per cent.
The figures suggest continued investor interest in selected commercial property segments despite lower overall transaction values.
More tenants opt for instalment payments
The report also highlighted a shift in commercial leasing payment preferences.
Instalment-based payment plans accounted for 83 per cent of CRC Property's commercial leases during the third quarter, up from 73 per cent in Q2.
Meanwhile, the share of leases paid through a single annual cheque declined from 27 per cent to 17 per cent.
The shift indicates that businesses are increasingly prioritising cash flow flexibility when negotiating commercial leases.
Market shifts towards smaller, income-generating assets
Bargh said investors were becoming more selective as Dubai's commercial property market adjusted to changing economic conditions.
The report suggests that smaller transactions, demand for quality office space and interest in industrial land are helping maintain market activity, even as the overall value of commercial property deals declines.
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