Abu Dhabi Office Rents Rise 20% and Dubai's 12% as Occupancy Tops 95%, CBRE Says

The report found that UAE commercial property held up in the quarter despite economic and geopolitical pressures. Demand for offices, industrial units and logistics space remained strong, and investors stayed interested.

Where Demand Is Coming From

In Dubai, CBRE said there was strong leasing activity in Dubai International Financial Centre, Business Bay and Dubai Internet City. Financial services, professional services and technology companies drove demand for premium offices, while the supply of grade A space in the main business districts remained limited.

In Abu Dhabi, the report linked the faster growth in rents to expanding financial institutions and multinational companies, as well as growing activity at Abu Dhabi Global Market, the capital's financial free zone.

Retail, Industrial and Logistics

Retail occupancy stood at 97% in Dubai and 96% in Abu Dhabi. Average retail rents rose 5% in Dubai and 1% in Abu Dhabi from a year earlier, supported by limited supply and demand for leading shopping destinations.

Industrial and logistics property also performed strongly. Average industrial rents rose 12% in Dubai and 6% in Abu Dhabi, driven by e-commerce companies, logistics providers and firms building regional supply chains, while modern warehouses and facilities remained scarce, according to the report.

The Wider Economy

CBRE pointed to the UAE's economic diversification as the base for demand. Non-oil activity accounts for 79% of the economy, and the purchasing managers' index reached 55.3 in August and September, its highest in 20 months, signalling continued growth in the non-oil private sector.

Matthew Green, CBRE's head of research for the Middle East and North Africa, said the UAE market still rests on strong fundamentals despite a difficult operating environment in 2026. He cited continued demand for high-quality offices, active tenants in industrial and logistics assets and steady growth in Abu Dhabi's residential market.

Why It Matters

For companies expanding in the UAE, including the technology and AI firms adding staff in Dubai and Abu Dhabi, the figures point to rising occupancy costs and limited choice of top-grade space in the main business districts. Near-full occupancy in both cities suggests tenants have little bargaining power in the short term, and that rents are likely to keep rising until new grade A supply is delivered.

The double-digit rise in Dubai industrial rents also reflects the pressure on warehousing as more companies use the UAE as a regional logistics base, a trend that has continued even as conflict in the region has disrupted shipping routes.