UAE Commercial Property Defies Regional Uncertainty

Commercial property markets in Dubai and Abu Dhabi have continued to demonstrate resilience despite regional instability, with strong demand for office, retail and industrial space supporting rental growth. A third-quarter market review published by property consultancy CBRE on 3 November found that limited availability of high-quality buildings was sustaining competition among occupiers across several important commercial districts.

Office occupancy reached approximately 95% in Dubai and 96% in Abu Dhabi, reflecting sustained demand from businesses expanding within the United Arab Emirates. Financial services, technology and other non-oil industries have supported leasing activity, particularly around Dubai International Financial Centre and Abu Dhabi Global Market. With relatively limited new prime office supply expected in the near term, landlords have continued to benefit from favourable conditions.

Industrial and logistics properties have also performed strongly as businesses adjust regional supply chains and seek modern warehousing facilities. Retail property remains comparatively resilient, supported by high occupancy in prime shopping destinations and investment in leisure-oriented commercial developments. Conditions in the residential market are becoming more differentiated, however, with Dubai experiencing more moderate price and rental growth while Abu Dhabi continues attracting buyers to new developments.

The findings illustrate how the UAE's diversified economy is helping sustain property demand despite uncertainty affecting tourism and other industries. Yet the strength of individual sectors varies considerably, making the broader market more complex than headline occupancy figures suggest. For investors, access to suitable locations, property quality and the timing of new supply are becoming increasingly important in determining future rental performance.