Dubai and Abu Dhabi’s property markets continued to attract businesses, investors and residents in Q3 2026, with office, retail and industrial rents recording annual growth.
Dubai and Abu Dhabi office demand remains strong
The UAE’s commercial property market continued to record strong demand in the third quarter of 2026, with office rents increasing by 12% in Dubai and 20% in Abu Dhabi, according to CBRE Middle East.
Dubai’s office occupancy reached approximately 95%, supported by demand from financial services, professional services and technology companies.
Key business districts, including DIFC, Business Bay and Dubai Internet City, continued to attract companies seeking premium office space.
Abu Dhabi recorded office occupancy of 96%, with demand supported by financial institutions, multinational companies and the expansion of Abu Dhabi Global Market (ADGM).
Abu Dhabi residential property prices rise 13%
Abu Dhabi’s residential market continued to gain momentum, with apartment prices increasing by 13% year-on-year in Q3 2026.
Residential transaction volumes also grew by approximately 5% compared with the same period last year.
Demand from homeowners and investors remained strong, particularly in new master-planned communities and emerging residential destinations.
Dubai’s residential market, meanwhile, maintained broadly stable sales prices during the quarter, with average values remaining significantly above pre-pandemic levels.
Dubai industrial rents increase 12%
Industrial and logistics properties remained among the UAE’s active real estate sectors.
Average industrial rents increased by 12% year-on-year in Dubai and 6% in Abu Dhabi.
Demand was supported by e-commerce operators, third-party logistics providers and businesses expanding their regional supply chains.
Retail occupancy reaches 97% in Dubai
The UAE’s retail property market also recorded high occupancy levels, reaching 97% in Dubai and 96% in Abu Dhabi.
Average retail rents increased by 5% in Dubai and 1% in Abu Dhabi, supported by demand for prime shopping destinations and investment in retail environments combining shopping, entertainment and leisure.
UAE’s non-oil economy supports property demand
The country’s diversified economy continued to support real estate activity, with non-oil sectors accounting for 79% of the UAE economy in Q3 2026.
The Purchasing Managers’ Index (PMI) reached 55.3 in both August and September, marking a 20-month high and indicating continued expansion in the non-oil private sector.
Matthew Green, Head of Research at CBRE MENA, said: “While 2026 has presented a more challenging operating environment than initially anticipated, the UAE real estate market continues to benefit from solid fundamentals. Demand for high-quality office space remains exceptionally strong, industrial and logistics assets continue to see healthy occupier activity, and Abu Dhabi’s residential market is recording sustained growth. Although sectors linked to international tourism have faced greater pressure this year, the UAE’s diversified economy, pro-business environment and ability to attract global investment continue to support real estate performance.”
