Today's Edition
By Mays Ibrahim (ABU DHABI)
The UAE's real estate market has demonstrated resilience amid regional uncertainty, supported by sustained occupier demand, continued investor interest and growth across key non-oil economic sectors, according to a new report by CBRE.
The country's property sector has maintained activity across residential, commercial, retail and industrial segments, with demand for quality assets and limited availability of certain property types supporting market performance.
The CBRE report highlighted the continued strength of the non-oil economy, which accounted for 79.2% of GDP in the first half of 2026, up from 78.1% a year earlier.
Financial services and insurance, information and communications, and construction were among the leading contributors to growth, expanding by 14.8%, 7.3% and 5.1% respectively.
This economic diversification has helped sustain activity across the property market, particularly in commercial real estate, where demand for quality office space remained strong.
Office occupancy approached 95% in Dubai and reached 96% in Abu Dhabi in the third quarter, while average rents increased by 12% and 20% year-on-year respectively.
The report attributed the performance to continued demand from financial institutions, professional services firms and international companies, alongside a shortage of available Grade A office space.
Investor interest has also remained evident in the industrial and logistics sector, as businesses adapt supply chains and increase domestic inventory in response to disruptions to regional maritime routes.
In Abu Dhabi, industrial rents increased by 6% year-on-year in the third quarter to Dh509 per square metre annually, supported by demand from end-users and foreign investment in strategic industrial zones.
The sector is also benefiting from new investment commitments and infrastructure development, including a Dh150,000-square-metre logistics facility planned in KEZAD Al Ma'mourah through an agreement between KEZAD Group and JINGDONG Property.
Retail real estate has similarly maintained strong occupancy, reaching 97% in Dubai and 96% in Abu Dhabi. Average rents increased by 5% in Dubai and 1% in Abu Dhabi, reflecting continued demand for well-positioned retail destinations.
The residential market presented a more mixed picture, with performance varying across locations and property types. Abu Dhabi apartment prices increased by 13% year-on-year, while Dubai recorded average residential price growth of 1%.
Despite softer conditions in parts of the residential market, CBRE pointed to continued development activity and investor demand, particularly in Abu Dhabi's off-plan segment.
Overall, the report said the UAE's economic support measures, expanding trade links and continued investment in infrastructure were helping reinforce the country's resilience.
