Grade A Commercial vs Luxury Residential Real Estate Dubai

Dubai is currently experiencing not only a residential boom, but also a commercial boom. The number of companies, both Blue-Chip and ambitious SMEs, are moving to the region in numbers that have never been seen before.

One thing Dubai has sorely lacked in previous years is Grade A commercial Office Space. Developers, both Private and government-backed, have focused on Residential projects to bring their visions to life. Commercial buildings have always taken a back seat, until now.

Developers are seeing this opportunity for a growing, thriving commerce sector and, as such, are building buildings to match. Omniyat recently launched Lumena, which brought Grade A facilities and amenities, previously reserved for the most luxurious residential buildings, to the commercial world. The result? Instant Sell out. On the back of the success, we now have Lueman Alta coming, and for our investors, we wanted to take a look at the numbers behind the investment. As smart, private and family money is moving into the Commercial sector in Dubai.

Here is a comprehensive overview of business registration, occupancy, and investment numbers in Dubai’s commercial sector.

Current Occupancy / Vacancy for Grade A Office in Dubai

From recent market reports:

Grade A offices in Dubai are currently experiencing very high occupancy levels, typically around 95%.
In key prime business districts (DIFC, Business Bay, Downtown Dubai, Sheikh Zayed Road, etc.), the occupancy often reaches 95‑98% for high‑spec, Grade A stock.
More widely across Dubai for all office stock, city‑wide occupancy is somewhere in the low 90s percent. Grades B & C are lower but still strong.
The vacancy rate is therefore relatively low for Grade A properties in these prime locations.

In summary, Grade A office space in prime locations in Dubai is highly occupied, with near full utilisation in many cases.

Residential Sector: Occupancy / Yields

For comparison, here are some highlights for the residential side:

Residential occupancy in prime/popular residential areas is also high, often > 90%, particularly in established/freehold communities.
Yields (gross) for residential apartments/studios vary: small units (studios / 1‑beds) tend to give higher yields, sometimes in the ~ 7–9% range in good or mid‑income areas; larger units/villas tend to have lower yields (4‑6%) because of higher acquisition costs.

Investment Comparison: Grade A Offices vs Residential

Here are the pros, cons, and “how they compare” between investing in Grade A offices vs residential in Dubai:

Net Yield / Risk‑Adjusted Return: What the Numbers Imply

Putting together the projections above, here’s how the investment return picture looks, roughly, for Grade A offices vs residential, and what to watch out for. These are estimates rather than precise figures, as much depends on location, tenant quality, financing, costs, and other factors.

How do the current occupancy rates in Grade A offices look, and how does this compare to prime residential areas in Dubai?

Current Occupancy / Vacancy for Grade A Office in Dubai

From recent market reports:

Grade A offices in Dubai are currently experiencing very high occupancy levels, typically around 95%.
In key prime business districts (DIFC, Business Bay, Downtown Dubai, Sheikh Zayed Road, etc.), the occupancy often reaches 95‑98% for high‑spec, Grade A stock.
More widely across Dubai for all office stock, city‑wide occupancy is somewhere in the low 90s percent. Grades B & C are lower but still strong.
The vacancy rate is therefore relatively low for Grade A properties in these prime locations.

In summary, Grade A office space in prime locations in Dubai is very well-occupied, with near full utilisation in many cases.

Residential Sector: Occupancy / Yields

For comparison, here are some highlights for the residential side:

Residential occupancy in prime/popular residential areas is also high, often > 90%, particularly in established/freehold communities.
Yields (gross) for residential apartments/studios vary: small units (studios / 1‑beds) tend to give higher yields, sometimes in the  7–9% range in good or mid‑income areas; larger units/villas tend to have lower yields (4‑6%) because of higher acquisition costs.

Key Takeaways: Which Might Be Better, When?

If you are seeking a higher yield and are comfortable with more concentrated risk, a high capital outlay, and potentially dealing with commercial leases and fit-outs, then Grade A offices in prime locations are highly attractive right now. The very high occupancy and rising rents make the cash flow side promising.
If you prefer lower risk, easier tenant turnover, and possibly a smaller initial investment, then residential might be more appealing. It may yield lower returns (especially for larger units) but offer less volatility and more stable demand.
Also, timing and location matter a lot: Grade A offices in prime nodes (DIFC, Sheikh Zayed Road, Business Bay) are doing much better (higher occupancy, higher rents) than offices in peripheral or older buildings. Similarly, residential in prime areas does well; less so in less desirable or oversupplied areas.

Spotlight: Lumena Alta by Omniyat

Lumena Alta is poised to redefine the future of commercial real estate in Dubai—a 380-metre, mixed-use masterpiece standing alongside Lumena at the gateway to Business Bay.

✨ LUMENA ALTA — New Commercial Launch by Omniyat

📍 Sheikh Zayed Road, Business Bay, next to the Metro Station & Lumena
📌*Pin Location: https://maps.app.goo.gl/BCmEtn2QaAKoxNQTA?g_st=iwb

Payment Plan: 50/50
Handover: 2030

SPECIAL OFFERS OF FULL FLOORS

• Iconic Landmark: by GAD Architects
• 380 m | G+72 (73 levels)
• 45 floors of premium offices
• 16 floors of 5-star luxury hotel
• 5 curated retail & F&B outlets
• Prime Access & Amenities
• 6 basement + 8 podiums
• Dedicated entries: Office/Hotel
• Fitness & aquatic centre
• Business centre
• Concierge services

Flexible Floor Plates
Floor 3–26: 4,500–5,695 sq ft
Floor 27–40: 4,545–6,349 sq ft
Floor 41–49: 4,564–7,758 sq ft

Sky Experiences:
• Level 56: Triple-height sky lobby with Burj Khalifa views
• Rooftop: Tallest skypool in Dubai (355 m) + signature restaurant
• Spa & wellness facilities

🚀High ROI potential + strong price appreciation outlook
🌟Rare opportunity to own in an iconic commercial tower in Dubai’s core business district