Dubai’s property market is usually viewed through the lens of residential real estate. Apartments, villas, branded residences and waterfront launches dominate headlines because they account for most of the activity and are easier for the wider public to follow.

But in 2026, one of the clearest signs of market strength is coming from a less-discussed segment: commercial real estate.

According to analysis by The Real Estate Reports, commercial unit sales in Dubai reached Dhs16.07bn between January 1 and May 19, compared with Dhs5.17bn during the same period last year. That represents growth of more than 210 per cent. Over the same period, Dubai’s wider property market remained broadly stable, with total sales value edging up to Dhs235.84bn from Dhs234.12bn in the comparable period of 2025.

The contrast is significant because it shows commercial real estate is not simply rising in line with the broader market — it is outperforming it. Commercial units accounted for 6.81 per cent of total sales value this year, up from 2.21 per cent a year earlier. While the segment still represents a relatively small share of overall transaction volumes, its growing contribution by value is becoming harder to ignore.

Offices drive the surge

Offices have been the dominant force behind the market’s momentum. Office sales reached Dhs13.16bn year-to-date, accounting for nearly 82 per cent of all commercial unit sales. Shops followed with Dhs2.88bn, while showrooms and workshops made up only a small portion of the market.

The growth story is not only about transaction volumes, but also about the size of deals. The average commercial unit transaction rose from Dhs2.87m last year to Dhs5.9m in 2026. Office transactions specifically averaged Dhs6.41m, more than double the Dhs3m recorded during the same period in 2025.

That shift suggests investors and companies are increasingly viewing office space as a long-term strategic asset rather than a secondary property play.

Pricing trends reinforce the same picture. Off-plan office prices climbed to a weighted average of Dhs4,349 per square foot this year, compared with Dhs2,388 per square foot in the same period last year. Ready offices also saw price growth, rising to Dhs2,266 per square foot from Dhs1,964.

Off-plan market takes control

One of the biggest changes this year has been the shift from ready commercial assets to off-plan developments.

In the same period of 2025, ready commercial units accounted for almost 69 per cent of commercial sales value, with off-plan representing just over 31 per cent. In 2026, the relationship has reversed dramatically. Off-plan commercial sales surged to Dhs13.06bn, accounting for more than 81 per cent of total commercial sales value, while ready commercial sales stood at Dhs3.01bn.

The shift points to growing confidence in Dubai’s future business demand and office pipeline, particularly as investors continue backing large-scale new developments.

The ready market remains active, but increasingly selective. In Business Bay, ready office sales declined from Dhs1.31bn to Dhs880m, even as average prices rose from Dhs2,163 per square foot to Dhs2,517. In Jumeirah Lakes Towers, ready office sales were broadly stable, while pricing climbed from Dhs1,662 per square foot to Dhs2,050.

Business Bay dominates

No district has played a larger role in Dubai’s commercial property story this year than Business Bay.

Commercial unit sales in the area reached Dhs6.81bn, accounting for more than 42 per cent of Dubai’s total commercial unit sales value. Offices made up nearly all of that activity, with sales climbing almost 280 per cent year-on-year to Dhs6.62bn.

Much of the momentum has been driven by off-plan office launches. Business Bay recorded Dhs5.74bn in off-plan office sales, compared with Dhs880m in ready office transactions. Projects such as Lumena by Omniyat and Lumena Alta by Omniyat generated Dhs4.58bn in combined sales, placing them at the centre of Dubai’s commercial real estate narrative in 2026.

Other districts also contributed to the market’s performance, including Trade Centre Second, TECOM Site A, Madinat Dubai Almelaheyah and Jumeirah Lakes Towers. However, none matched the scale or concentration of activity seen in Business Bay.

Strong growth, but highly concentrated

Despite the headline growth, the market is not rising evenly across all districts and asset classes.

The top five commercial projects accounted for 51.8 per cent of all commercial unit sales value this year, while the top 10 projects represented 62.8 per cent.

That concentration highlights an important nuance. Dubai’s commercial property market is booming, but the strongest growth remains tied to a focused wave of premium, off-plan office launches, particularly in Business Bay.

Even so, the broader market is still expanding. Excluding the top five projects, commercial unit sales still reached Dhs7.74bn — comfortably above the Dhs5.17bn recorded for the entire commercial market during the same period last year.

Commercial property emerges as a key market signal

The comparison with residential flats further underlines the strength of commercial real estate. Flat sales increased by around 4.2 per cent year-on-year to Dhs106.15bn, while commercial unit sales surged by more than 210 per cent. Transactions rose 51.4 per cent, and average deal sizes more than doubled.

Residential property remains the dominant engine of Dubai’s market, but commercial real estate is becoming an increasingly important indicator of business confidence, investor appetite and future economic demand.

For now, the message is clear: commercial real estate is no longer a side note in Dubai’s property market. It is emerging as one of the strongest signals of how the city’s business growth is translating into real estate investment activity.

• Ali Shahin is the founder of The Real Estate Report, an independent platform that dives into the data driving the property sector in the UAE. You can follow The Real Estate Report on substack or via its website.

Grammy Award-winning band Imagine Dragons will headline the After-Race Concerts at the Formula 1 Etihad Airways Abu Dhabi Grand Prix 2026 on December 5, organisers Ethara said on Wednesday, adding another major act to the season-ending event.

The US rock band will perform at Etihad Park on Yas Island as part of the Yasalam entertainment programme, joining previously announced acts Lewis Capaldi and Zara Larsson as part of the F1 season finale at Yas Marina Circuit, taking place from December 3-6.

Known for global hits including Radioactive, Demons, Believer and Thunder, Imagine Dragons have become one of the most commercially successful touring acts of the past decade, regularly headlining stadiums and arenas worldwide.

David Powell, chief portfolio and strategy officer at Ethara, said the band’s live performances made them a strong fit for the event’s entertainment programme.

“Imagine Dragons are one of the defining live acts of this generation,” Powell said. “Their ability to deliver stadium-scale performances that connect with audiences around the world makes them the perfect addition to the Yasalam programme.”

Access to the concerts is included with Abu Dhabi Grand Prix tickets, which are available across general admission, grandstand and hospitality categories.

Organisers said the Golden Circle upgrade option will allow fans closer access to the stage.

Abu Dhabi Grand Prix attracted 339,000 fans in 2025

The Abu Dhabi Grand Prix has become one of Formula One’s most prominent season finales, combining sport and large-scale entertainment on Yas Island.

The 2025 edition drew a record 339,000 attendees, including 136,000 concertgoers, according to organisers, who said the event was named F1 Promoter of the Year.

The 18th edition of the race will take place from December 3–6, 2026.

Emirates has reached a major milestone in its ambitious multi-billion-dollar aircraft retrofit programme with the launch of its first refurbished two-class Airbus A380, marking another significant step in the airline’s sweeping fleet modernisation strategy.

The newly upgraded aircraft, registered as A6-EUX, has officially entered commercial service operating as EK 39/40 between Dubai and Birmingham. The aircraft now features Emirates’ latest cabin products across three classes, including 76 Business Class seats, 56 Premium Economy seats, and 437 Economy Class seats, an Emirates media report said.

The refurbishment marks the first of 15 two-class A380 aircraft that Emirates plans to transform as part of its long-term commitment to delivering a more consistent and elevated passenger experience across its global network.

Major milestone in Emirates’ fleet overhaul

The extensive retrofit programme is being managed entirely in-house by Emirates Engineering in Dubai and has already seen significant progress.

So far, the airline has completed refurbishment work on 95 aircraft, including 42 Airbus A380s and 53 Boeing 777s, representing more than one-third of Emirates’ active fleet.

Sir Tim Clark, President Emirates Airline, described the milestone as another important chapter in the airline’s customer experience strategy.

“The Emirates retrofit programme revolves around the central premise that we will offer our customers a truly elevated experience every time they choose to travel with us,” Sir Tim Clark said.

“To this end, our engineering team has been working continuously and at pace in close collaboration with an ecosystem of partners and suppliers to meticulously refresh and integrate the best-in-class products to each aircraft in the programme.”

He added that the scale and complexity of the project continues to push engineering boundaries within the aviation sector.

“Our retrofit programme has raised the bar at every step, in terms of complexity, scale and detailed craftsmanship. The reconfiguration of our two-class A380 into a three-class layout that brings our popular Premium Economy seating onto the upper deck illustrates the extensive capabilities of our team,” he said.

Premium Economy takes centre stage

One of the standout additions to the refurbished aircraft is the introduction of Emirates’ Premium Economy cabin on the upper deck of the A380 for the first time.

The cabin features 56 spacious leather seats arranged in a 2-3-2 configuration, offering passengers enhanced comfort and upgraded amenities designed to bridge the gap between Business and Economy Class travel.

Passengers travelling in Premium Economy can expect generous seat recline, full leg and footrests, six-way adjustable headrests, built-in charging ports, side cocktail tables, and enhanced dining experiences. The cabin also includes Emirates’ in-flight entertainment system displayed on 13.3-inch personal screens.

The addition of Premium Economy has become a central pillar of Emirates’ broader strategy to cater to evolving customer demand for more premium travel options at competitive prices.

Refreshed interiors across all cabins

Beyond the introduction of Premium Economy, the aircraft has undergone a full interior refresh across all cabins.

From newly installed carpets and ceiling panels to upgraded cabin finishes and next-generation seating, Emirates says passengers will notice a significantly more modern onboard atmosphere throughout the aircraft.

The redesigned interiors also incorporate Emirates’ latest signature design elements, including contemporary colour palettes, premium wood finishes, and bespoke Ghaf tree motifs, a tribute to the UAE’s national tree.

The upgraded cabin aesthetic forms part of Emirates’ wider effort to standardise its newest onboard products across the fleet while maintaining the airline’s premium identity.

Inside the complex A380 transformation

According to Emirates Engineering, the retrofit of A6-EUX required a complete dismantling and reconstruction of the aircraft’s cabin interior.

The engineering team removed 120 Economy Class seats from the upper deck to make space for the new Premium Economy cabin and an additional 18 Business Class seats.

The large-scale reconfiguration also involved extensive structural modifications, including repositioning galley modules, overhead bins, storage areas, partitions, and other cabin components. Engineers additionally carried out significant updates to the aircraft’s electrical and plumbing systems to support the new layout.

In total, approximately 50 engineers and technicians worked on the project, investing nearly 35,000 man-hours and utilising more than 2,500 different parts during the refurbishment process.

Emirates said the retrofit of the first two-class A380 took approximately two months to complete, including testing and planning phases. However, efficiencies gained during the initial project are expected to significantly reduce turnaround times for future aircraft.

The airline now expects subsequent retrofits of similar aircraft to take around 30 days each.

By the end of 2026, all 15 two-class A380 aircraft within the Emirates fleet are expected to be fully refurbished.

Retrofit programme continues to expand

Emirates first announced its ambitious retrofit initiative in 2021 as part of a broader strategy to maintain its competitive edge and enhance passenger experience across long-haul operations.

Initially, 120 aircraft were scheduled for refurbishment under the programme’s first phase. However, strong customer feedback and positive operational results prompted the airline to significantly expand the project.

By May 2024, the retrofit programme had been extended to cover 191 aircraft before later increasing again to a total of 219 aircraft.

Today, a dedicated workforce of around 270 employees supports the programme, with Emirates Engineering currently rolling out an average of two refurbished aircraft every month from its Dubai facilities.

Focus on sustainability and upcycling

Alongside the cabin upgrades, Emirates has also been placing increased emphasis on sustainability through its upcycling initiatives linked to the retrofit programme.

Materials removed from the airline’s Airbus A380 and Boeing 777 aircraft are being evaluated for reuse rather than disposal, supporting Emirates’ broader environmental objectives.

Among the initiatives launched under the programme is the “Aircrafted” collection of limited-edition products created from repurposed aircraft materials, including luggage items and accessories.

The airline has also introduced “Aircrafted for Kids” backpacks made using recycled Economy Class seat fabric. To date, around 4,000 backpacks have been donated to children across 10 countries.

Dubai’s rental market is entering a new phase of recalibration in 2026, with apartments beginning to show signs of cooling while villas continue to hold firm on pricing and demand.

Fresh market data from Property Finder, Bayut and Savills Middle East suggests that while the emirate’s broader real estate sector remains resilient, apartments are seeing sharper short-term rent adjustments compared to villas, highlighting a widening divergence between the two property segments.

Industry experts say the shift is not a sign of market weakness, but rather a transition toward a more balanced and sustainable phase after years of rapid growth.

Apartment rents cool after strong Q1

According to Property Finder data, apartment rents averaged Dhs90,940 in April 2026, marking a 4.6 per cent adjustment from the Q1 2026 average of Dhs95,293.

Despite the decline, apartment rents remain 4.4 per cent higher year-on-year compared to April 2025, underlining that the market is still on an upward trajectory overall.

Read more-Dubai property values are falling, with rents under pressure

Villas, however, have moved in the opposite direction. Average villa rents climbed 3.3 per cent over the same quarterly period to Dhs229,000 and were up 9.1 per cent year-on-year.

“The pattern suggests a market that is not moving uniformly, but recalibrating at different speeds across segments, with apartments normalising after a stronger Q1 and villas maintaining a steadier upward trajectory,” Cherif Sleiman, chief revenue officer at Property Finder, said.

The numbers indicate that villas are continuing to outperform apartments across nearly every timeframe, with experts pointing to stronger pricing momentum and more resilient demand in the villa market.

Villas widen their lead despite higher prices

Interestingly, the growing appetite for villas is not being fuelled by cheaper rents.

In fact, the gap between apartment and villa rents has widened further in 2026. Property Finder data shows the villa-to-apartment rent ratio increased from 2.41 times in April 2025 to 2.52 times in April 2026, making villas objectively more expensive relative to apartments.

Yet tenant demand for villas has continued to rise. The villa share of demand increased from 25 per cent to 29 per cent year-on-year, while apartments saw their share ease from 75 per cent to 71 per cent.

“The shift in demand toward villas is evident, but it is not being driven by a narrowing price gap,” Sleiman said.

“This movement signals a strategic redistribution of demand; the market is becoming less sensitive to short-term price shifts and more responsive to specific lifestyle needs.”

The trend reflects a broader evolution in tenant priorities across Dubai, with larger living spaces, privacy and community-focused developments continuing to attract families and long-term residents despite higher rental costs.

Apartments lead the adjustment cycle

Market analysts say apartments are responding more quickly to changes in supply and demand dynamics because of their higher transaction volumes and faster turnover.

Bayut Property Experts said apartment-heavy communities recorded average declines of around 3.9 per cent to 4 per cent between January and late April 2026, compared to a more moderate 2.9 per cent to 3 per cent decline in villa communities.

“Apartment-heavy communities recorded an average decline of around -3.9 per cent to -4 per cent, compared to a more moderate -2.9 per cent to -3 percent change in villa communities,” Bayut Property Experts conveyed.

“This reflects the underlying structure of each asset class. Apartments typically respond more quickly to changes in supply and demand due to higher transaction volumes, greater listing density, and faster turnover.”

Villas, meanwhile, continue to benefit from tighter supply and longer occupancy cycles, helping support more stable pricing behaviour.

Experts stressed, however, that the market is not witnessing a major split between the two sectors.

“Both segments remain active and are adjusting within the same broader cycle of normalisation, with villas simply showing a lagged and more gradual response,” Bayut Property Experts conveyed.

Independent market tracks emerge

The latest figures also suggest that apartments and villas are increasingly behaving as independent segments rather than moving in tandem.

“In April 2026, apartment rents eased by nearly 5% while villa rents simultaneously climbed by over 3 per cent. This signals that the segments serve different demand pools that don’t always react to the same pressures,” Sleiman said.

Property Finder’s 16-month analysis showed no mechanical relationship between the two categories, with apartments and villas often moving in opposite directions depending on market conditions.

“While the general buoyancy of the UAE economy keeps the long-term trend for both segments upward, the villa market is currently decoupled from the pricing shifts affecting apartments,” Sleiman added.

The divergence highlights how Dubai’s property market has become increasingly segmented, with lifestyle preferences, supply pipelines and tenant demographics playing a larger role in shaping rental movements.

Market stabilisation underway

According to Bayut Property Experts, Dubai’s rental market has moved through several phases of stabilisation and recalibration since the start of 2026.

At the beginning of the year, activity levels remained strong. However, following regional geopolitical tensions at the end of February, the market briefly adjusted its pace before stabilising again in March.

“April then marked a clearer recalibration phase, with overall levels sitting around 3.3% below the January baseline,” Bayut Property Experts conveyed.

The company noted that the recent month-on-month adjustments are consistent with ongoing supply absorption and evolving pricing expectations as the market gradually normalises.

Importantly, analysts do not see the current slowdown turning into a sharp correction.

“The market continues to demonstrate depth and consistency, with changes unfolding gradually rather than sharply as it settles into a more stable post-disruption environment,” Bayut Property Experts conveyed.

What happens next?

Industry leaders expect rents to soften modestly in the short term as the wider real estate market adjusts to changing sentiment and global uncertainty.

“In the short term, it is likely that rents will soften alongside the wider real estate market, driven by sentiment and reduced immediate demand due to geopolitical uncertainty,” Alec Smith, head of Sales and Leasing, Residential Agency at Savills Middle East, said.

However, Smith noted that Dubai’s rental sector is likely to remain more resilient than the sales market, as residents delaying home purchases will continue to rent.

He also pointed to an increase in available rental stock, as some property owners unable to secure desired sale prices shift toward leasing instead.

A healthier market ahead?

Experts believe the current correction could ultimately improve affordability and long-term sustainability across Dubai’s housing market.

“Yes, this type of correction can be healthy for the market in the long term,” Smith said.

“A market correction often leads to more disciplined pricing, reduced speculative buying, and a greater focus on fundamentals such as location, quality, and long-term value.”

As Dubai’s property market matures, analysts say the current recalibration may help create a more balanced environment where sustainable growth outweighs speculative surges.

For now, the numbers clearly show one trend emerging: apartments are leading the rental slowdown, while villas continue to chart a stronger and steadier path.

Anthropic is closing in on its first quarterly operating profit, a person familiar with the matter said, as its sales eclipse the enormous costs to develop and deploy artificial intelligence.

In recent fundraising materials, the San Francisco-based startup apprised investors that its June quarter sales could reach at least $10.9bn, more than double its $4.8bn in revenue for the just-ended March quarter, the person said.

That will propel its second-quarter operating profit to an expected $559m.

The Wall Street Journal reported the figures earlier on Wednesday.

Anthropic‘s financials underscore how demand for the lab’s Claude AI has jumped, as software developers use the technology to handle their computer programming and some enterprises deploy its top-shelf model Mythos to unearth vulnerabilities in their code.

The profit is rare for an AI industry that is grappling with the technology’s high costs.

One such expense, in the form of AI’s voracious demand for computing power, was also disclosed on Wednesday in the IPO filing of SpaceX, Elon Musk’s rival space and AI company.

SpaceX said Anthropic had agreed to pay it $1.25bn per month through May 2029, in deals for compute capacity that now include both of SpaceX’s AI training data center clusters, Colossus and Colossus II.

Either Anthropic or SpaceX can terminate the agreements with 90 days’ notice, and fees would be reduced during the capacity ramp-up this month and next, the filing said.

Musk posted on X that SpaceX was in discussions with other companies about “offering AI compute as a service at significant scale,” which would be a boost as its AI segment remains in the red.

SpaceX’s AI segment lost about $2.5bn from operations in the March quarter, on segment revenue of $818m, its IPO filing showed.