{"id":83649,"date":"2025-12-17T10:13:04","date_gmt":"2025-12-17T08:13:04","guid":{"rendered":"https:\/\/gulftech-news.com\/en\/?p=83649"},"modified":"2025-12-17T10:13:06","modified_gmt":"2025-12-17T08:13:06","slug":"dubais-office-market-heading-for-major-reset","status":"publish","type":"post","link":"https:\/\/gulftech-news.com\/en\/2025\/12\/17\/dubais-office-market-heading-for-major-reset\/","title":{"rendered":"DUBAI&#8217;S OFFICE MARKET HEADING FOR MAJOR RESET"},"content":{"rendered":"\n<p><strong>Firas Al Msaddi says two-tier system to emerge by 2028 as<\/strong> <strong>Grade A properties reshape sector<\/strong><\/p>\n\n\n\n<p>Dubai&#8217;s flourishing commercial real estate sector is heading for a major reset which will see a two-tier office market emerge by 2028, with older buildings facing pressure as new Grade A properties command premium pricing.<\/p>\n\n\n\n<p>While commercial real estate has seen significant growth this year, climbing 77.9% in terms of sales value and 35.1%<strong> <\/strong>in transaction volume over the first 11 months, for more than 15 years it has not kept pace with the residential market in adopting luxury design and construction quality.<\/p>\n\n\n\n<p>&#8220;Since 2008, Dubai has not seen a real new generation of office buildings,&#8221; said Firs Al Msaddi, CEO of f\u00e4m Properties. &#8220;In contrast, the residential market went through a major transformation &#8211; new design language, new architecture, new luxury standards, and new construction codes.<\/p>\n\n\n\n<p>&#8220;The commercial sector did not have a reset, but that\u2019s now on the way. The first wave of next-generation Grade A offices will only start handing over from 2028 onward.<\/p>\n\n\n\n<p>&#8220;That will be the moment of truth, as we see how secondary offices perform when tenants finally have modern, efficient, architecturally relevant options.<\/p>\n\n\n\n<p>\u201cThe gap between old and new will widen, and the entire commercial sector will reprice itself around quality, creating a two-tier office market, with older buildings facing pressure as new Grade A properties command premium pricing.&#8221;<\/p>\n\n\n\n<p>Al Msaddi points to Vision Tower in Business Bay as one of the clearest indicators of demand for real Grade A office space in Dubai. &#8220;It has consistently outperformed the market because it attracts real, established corporates,&#8221; he said.<\/p>\n\n\n\n<p>&#8220;The smallest unit is a half-floor, which naturally filters for serious companies, and the performance of that building tells you exactly how strong true Grade A demand really is.\u201d<\/p>\n\n\n\n<p>The Dubai real estate market has already had a record-breaking year in the residential sector, with 197,263 transactions worth AED624.1 billion surpassing the previous full year results with a month to spare in 2025.<\/p>\n\n\n\n<p>Meanwhile, data from DXBinteract shows there has also been impressive growth in the commercial market over the first 11 months of the year.<\/p>\n\n\n\n<p>Total commercial real estate sales value reached AED 15.5 billion, a 77.91% leap from AED 8.7 billion last year, while overall transaction volume rose by 35.1% from 3,970 deals last year to 5,364.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Firas Al Msaddi says two-tier system to emerge by 2028 as Grade A properties reshape sector Dubai&#8217;s flourishing commercial real estate sector is heading for a major reset which will see a two-tier office market emerge by 2028, with older buildings facing pressure as new Grade A properties command premium pricing. While commercial real estate &hellip;<\/p>\n","protected":false},"author":2,"featured_media":83650,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[4636,4637],"class_list":["post-83649","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-dubais-office","tag-major-reset"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>DUBAI&#039;S OFFICE MARKET HEADING FOR MAJOR RESET - Gulf Tech News<\/title>\n<meta name=\"description\" content=\"DUBAI&#039;S OFFICE MARKET HEADING FOR MAJOR RESET\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/gulftech-news.com\/en\/2025\/12\/17\/dubais-office-market-heading-for-major-reset\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DUBAI&#039;S OFFICE MARKET HEADING FOR MAJOR RESET - 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