CBRE Q3 2026 Review: UAE Office Markets Lead Growth in Dubai and Abu Dhabi

CBRE's latest UAE Real Estate Market Review for Q3 2026 highlights the ongoing resilience of the nation's property market. The report attributes this strength to strong occupier demand, a diversified non-oil economy, and sustained investor interest, despite a complex global economic and geopolitical landscape.

Economic Drivers and Market Performance

The non-oil economy remained a significant growth engine, accounting for 79% of the UAE economy during the third quarter. The UAE Purchasing Managers' Index (PMI) reached 55.3 in August and September, a 20-month high, signaling continued expansion in the non-oil private sector. This economic activity, coupled with the UAE's ability to attract businesses and talent, underpins strong real estate fundamentals.

Office Market Strength

Office markets in both Dubai and Abu Dhabi were the strongest performers, characterized by high demand for quality space and a shortage of Grade A supply.

• Dubai: Average office rents increased by 12% year-on-year, with occupancy rates around 95%. Core locations like DIFC, Business Bay, and Dubai Internet City saw strong leasing activity, primarily from financial, professional services, and technology firms.
• Abu Dhabi: Experienced even stronger growth, with average office rents rising by 20% year-on-year and occupancy levels reaching 96%. Demand was largely from financial institutions, multinational corporations, and the expansion of ADGM.

Residential and Retail Markets

Abu Dhabi's residential market showed positive momentum, with apartment prices increasing by 13% year-on-year and residential transaction volumes up approximately 5%. Dubai's residential market is noted to be entering a more balanced phase after rapid growth.

The UAE retail market maintained healthy fundamentals, with occupancy rates of 97% in Dubai and 96% in Abu Dhabi. Average retail rents rose by 5% year-on-year in Dubai and 1% in Abu Dhabi, supported by limited supply and investment in experiential retail.

Industrial and Hospitality Sectors

Industrial and logistics assets continue to be top performers. Average industrial rents increased by 12% in Dubai and 6% in Abu Dhabi, driven by e-commerce, third-party logistics, and supply chain optimization needs.

Conversely, the UAE's hospitality market faced challenges due to geopolitical uncertainty. Hotel occupancy declined by 24 percentage points year-to-date, though performance improved towards the end of Q3. Dubai welcomed nearly seven million international overnight visitors in the first eight months of the year, with improving monthly arrival volumes.