The UAE’s commercial real estate market continues to show strong momentum, supported by high occupancies, rental growth and shifting occupier and consumer behaviour, according to Khaleej Times citing ValuStrat insights.
ValuStrat data indicates that Abu Dhabi’s office market, with an estimated stock of 3.9 million sq m, recorded rental growth of 22.7 percent year on year and 3.6 percent quarter on quarter, with occupancy levels exceeding 90 percent in core business districts. Limited near-term supply and sustained demand for well-located Grade A space continue to favour landlords.
Retail assets have also performed strongly. Prime malls in Abu Dhabi and Dubai saw rental increases of 3.4 percent and 13.5 percent respectively in the year to Q3 2025, supported by footfall growth and evolving consumer preferences toward convenience, value and experiential formats. ValuStrat estimates nearly 2 million sq m of retail GLA in Abu Dhabi, with expansion and redevelopment projects underway.
Demand patterns in the office market are also shifting. Leasing enquiries from regional occupiers are growing faster than those from international corporates, supporting rental resilience but also signalling that parts of the prime segment may be approaching cyclical peaks.
Overall, the outlook for UAE commercial real estate remains positive, underpinned by economic growth, population inflows, mixed-use development and sustained investor confidence, even as occupiers become more selective on pricing and quality.
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