The United Arab Emirates’ commercial property sector has demonstrated exceptional resilience and growth throughout 2025, driven by converging factors of constrained supply and evolving market dynamics across both office and retail segments. According to industry experts and recent market analyses, business hubs including Dubai and Abu Dhabi have experienced remarkable performance metrics despite global economic uncertainties.
Market intelligence from JLL’s Office Market Dynamics report reveals a significant transformation in demand composition within the UAE’s 13.4 million square meters of office inventory. Regional corporations are increasingly outpacing international counterparts in leasing inquiries, demonstrating greater flexibility regarding premium rental structures. This trend has created a landlord-favorable environment, particularly for premium-grade properties in central business districts.
The retail landscape has undergone parallel transformation, with consumer behavior shifts toward value and convenience reshaping the sector’s 8.24 million square meters of inventory. Prime super-regional malls maintained their premium positioning, with Abu Dhabi recording a 3.4% rental increase year-to-Q3 2025, while Dubai witnessed a substantial 13.5% surge during the same period.
ValuStrat data indicates Abu Dhabi’s office market, with approximately 3.9 million square meters of stock, achieved asking rent increases of 22.7% year-over-year and 3.6% quarter-over-quarter, maintaining occupancy rates exceeding 90% in central business districts. The retail segment reached nearly 2 million square meters of gross leasable area, supported by expansion projects including Al Jimi Mall’s redevelopment.
Industry executives highlight several structural catalysts underpinning this growth, including government long-term economic strategies, expanded freehold zones, golden visa initiatives, and stable tax regulations. The emergence of master-planned mixed-use developments represents another critical driver, accounting for over 85% of new urban development and delivering superior rental yields compared to single-use zones.
Looking toward 2026, market sentiment remains optimistic though cautiously attentive to cyclical peaks in rental growth rates. Dana Williamson of JLL emphasized that ‘success hinges on deep understanding of evolving occupier and consumer behaviors, and the ability to implement innovative adaptation strategies in a fast-maturing market.’
Executive perspectives from Ohana Developments and Relaam reinforce this outlook, noting sustained demand for premium developments, particularly those offering integrated lifestyle components, wellness features, and sustainability considerations. Challenges include maintaining design consistency, preserving authentic community identity, and ensuring commercial offerings evolve alongside increasingly selective buyer expectations.