Dubai Office Rents Climb as UAE Property Market Stays Strong

Dubai’s office rents increase 13% year-on-year while Abu Dhabi office occupancy reaches 96%, highlighting sustained demand for premium commercial space despite moderation in residential and hospitality markets.

The  real estate market of UAE shows impressive resilience even in the second quarter of 2026, when it comes to office real estate assets in Dubai and Abu Dhabi. While the outlook on the residential and hotel real estate is less optimistic, CBRE says that there is a steady demand from tenants along with low supply of quality offices which contributes to rising rents in the region.

Average office rental prices for Dubai experience an increase of 13% compared to the last year, while prime office rental prices are up 16%. Occupancy rates stand at about 94%, demonstrating the ongoing need for Grade A office space among international companies, banks, technology businesses, and professional services organizations. The tight supply in main business areas contributes to the positive market conditions for landlords.

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The commercial market conditions in Abu Dhabi are equally favorable. The average office rental rate in Abu Dhabi rose by about 16%, while occupancy stood at 96%. The market is buoyed by increased business operations, economic diversification policies by the government, and increased demand in existing commercial areas. The lack of high-end offices in the city boosts office rentals.

As the office commercial segment demonstrates resilience, CBRE observes that there is a phase of moderation witnessed in the UAE’s residential property market within the quarter. Dubai witnesses a slowdown in residential demand on account of higher housing supply, which takes the pressure off prices. In comparison, Abu Dhabi’s residential market continues to perform well due to good domestic demand and off-plan sales.

In addition, the hospitality sector is also currently experiencing short-term challenges as travel disruptions have impacted the occupancy rates and financial performance of hotels. But, hotels continue to adapt through various initiatives within the country and renovations to ensure competitiveness.

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Even amid economic risks and regional issues, the UAE's real estate industry continues to be supported by good institutional systems, investors' confidence, and economic policies. According to industry analysts, the demand for top-class commercial real estate, limited supply, and growth of businesses will fuel growth in the commercial real estate markets of Dubai and Abu Dhabi in the years ahead. With the UAE continuing its efforts towards economic diversification, the real estate segment of commercial property will continue to play a pivotal role in its performance.