The UAE’s office market has shown significant growth in the third quarter of 2026, with average office rents increasing by 20% in Abu Dhabi and 12% in Dubai, according to CBRE Middle East’s latest report. This surge is attributed to tight Grade A supply and strong demand from sectors such as financial services and technology, highlighting the resilience of the UAE’s real estate sector amid a complex economic backdrop.
As reported, occupancy rates have reached 96% in Abu Dhabi and 95% in Dubai, indicating a robust demand for high-quality office spaces in major business districts. The report emphasizes that the demand is primarily driven by multinational companies and financial institutions seeking premium office accommodations, particularly in areas like the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM).
Market Dynamics and Demand Drivers
Dubai’s office market continues to thrive, with a notable increase in demand for premium spaces. The average office rents rose by 12% year on year, while occupancy levels remain high, leaving tenants with limited options in sought-after districts. The financial services and technology sectors are leading the charge in leasing activity, as firms prioritize high-quality office environments.
In Abu Dhabi, the office market has outperformed expectations, with a remarkable 20% increase in average rents. The city’s financial ecosystem is expanding rapidly, with ADGM reporting nearly 14,000 active licenses and a workforce exceeding 49,000. This growth has further fueled demand for Grade A office spaces, reinforcing Abu Dhabi’s status as a regional financial hub.
Residential Market Trends
The residential market presents a more mixed picture. In Dubai, average residential sales prices have stabilized, with a slight decline of approximately 1% year on year, while rental rates have decreased by around 7%. This moderation follows several years of rapid growth, as buyers become more selective and developers adjust their strategies in response to changing market conditions.
Conversely, Abu Dhabi’s residential market continues to show strength, with apartment prices increasing by 13% year on year and transaction volumes growing by about 5%. This divergence reflects the differing stages of the property cycles in the two emirates, with Dubai entering a phase of adjustment while Abu Dhabi benefits from sustained demand.
Outlook for the UAE Real Estate Market
Despite challenges in the hospitality sector due to geopolitical uncertainties affecting international travel, the overall outlook for the UAE real estate market remains positive. The industrial and logistics sectors are also performing well, with average rents increasing by 12% in Dubai and 6% in Abu Dhabi, driven by demand from e-commerce and logistics companies.
Matthew Green, Head of Research at CBRE MENA, noted that while 2026 has presented challenges, the UAE’s real estate market continues to benefit from solid fundamentals. The demand for high-quality office space remains strong, and the diversified economy is expected to support ongoing real estate performance.
For further insights, refer to Economy Middle East.
