Firas Al Msaddi predicts that Dubai’s commercial real estate landscape is on the brink of significant change, potentially leading to a dual-tier office market by 2028. As new Grade A properties emerge, older buildings are expected to face challenges, leading to a disparity in pricing. Although the commercial sector has experienced impressive growth recently, it has lagged behind the residential market in adopting high-end design and quality for over 15 years.

Al Msaddi, the CEO of fäm Properties, emphasized that since 2008, there hasn’t been a substantial update in Dubai’s office buildings. In contrast, the residential market has undergone a remarkable transformation, introducing new design principles, luxury standards, and construction methods. The anticipated introduction of next-generation Grade A offices will begin in 2028, bringing a decisive moment that will reveal how older offices perform against these modern alternatives.

The market gap will likely broaden, impacting pricing strategies across the commercial sector. Al Msaddi noted that as newer Grade A properties demand premium prices, older offices may struggle to maintain their value. Vision Tower in Business Bay serves as a prime example of the demand for quality office space, consistently attracting reputable corporations and indicating the strong market for Grade A properties.

In 2025, Dubai’s residential real estate market achieved record results with 197,263 transactions valued at AED 624.1 billion, surpassing previous records with a month left in the year. Concurrently, the commercial market has also shown significant growth; total sales value soared to AED 15.5 billion, marking a 77.9% increase compared to last year, while transaction volume rose by 35.1%.

Overall, the commercial real estate market from January to November 2025 demonstrates robust performance, with office sales amounting to AED 11.2 billion, alongside notable figures in other sectors. As Dubai’s commercial space evolves, it will be essential to monitor these developments and their impact on the overall market landscape.