The UAE’s premium retail and office sectors delivered strong performance in 2025, supported due to strong demand and limited supply in major business hubs such as Dubai and Abu Dhabi. Analysts citing the latest JLL Office Market Dynamics report noted pronounced growth in commercial real estate, driven by shifts in consumer behavior and a growing focus on value and convenience in retail formats. These trends are shaping an inventory of around 8.24 million square meters of retail space across the two emirates.
Backed by sustained demand for prime retail locations, landlords are negotiating higher rents. In Abu Dhabi, super-regional malls maintained their lead over other categories, recording a 3.4% year-on-year rental increase to the third quarter of 2025. Dubai, however, saw a sharper rise of 13.5% over the same period.
This landlord-favorable environment is most evident in prime retail assets and well-performing shopping centers that continue to attract strong foot traffic and tenant turnover. Consultancy ValuStrat reported that Abu Dhabi’s office market, with an estimated stock of 3.9 million square meters, recorded a 22.7% year-on-year increase in asking rents and a 3.6% quarter-on-quarter rise, while occupancy in central business districts exceeded 90%. Additional supply is expected from a new office building in Masdar City.
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Retail space expands alongside e-commerce growth
Retail space represents approximately 2 million square meters of total leasable area, with expansion projects underway, including the redevelopment of Al Jimi Mall. Aldar’s retail portfolio revenue rose 12% year on year, supported by strong anchor assets such as Yas Mall, which operates at 98% occupancy. The UAE’s e-commerce market, forecast to exceed AED 48.5 billion by 2028, further underlines the changing retail scene, according to the report. JLL noted that the combined office inventory in Dubai and Abu Dhabi, totaling 13.4 million square meters, is undergoing a major shift in demand composition.
Leasing inquiries from regional companies are growing faster than those from large multinational corporations. This shift benefits landlords, as regional occupiers often show greater pricing flexibility and a higher willingness to accept premium rental structures compared to international tenants.
The report also suggests that rental growth in both emirates may be approaching a cyclical peak, particularly for prime and Grade A assets. Indicating the flight-to-quality trend, prime rents in Abu Dhabi surged 31.3% year on year. For those conducting research on current rental market trends in Dubai, the 16.8% annual increase recorded through the third quarter of 2025 points to the strength of demand in the emirate’s commercial sector.
Occupiers are increasingly questioning the lasting feasibility of these levels within operational budgets. Dana Williamson, head of offices, business space and retail for the MEA region at JLL, said that as the UAE’s premium commercial sectors evolve, a period of sustained resilience is expected. For investors and developers, success will depend on a thorough comprehension of changing occupier and buyer patterns, as well as the ability to implement responsive tactics in a rapidly maturing market.
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Branded developments drive buyer demand
Hussein Salem, CEO of Ohana Developments, described 2025 as a strong year for Abu Dhabi’s real estate sector overall, underpinned by buyer assurance, long-term economic planning, and a market increasingly oriented toward lifestyle-driven demand. Interest remained strong in premium developments, especially in developing destinations that deliver a balance of connectivity, natural surroundings, and long-term value. These trends are demonstrated by the company’s own project performance.
Jacob & Co. Beachfront Living by Ohana in Al Jurf, launched earlier this year as a AED 4.7 billion waterfront community, resonated strongly with buyers prioritizing space, privacy, and coastal living. The momentum highlights rising demand for branded, design-led destinations that offer exclusivity and long-term value in the UAE. Going forward to 2026 and beyond, fundamentals remain positive as Abu Dhabi continues to invest in master-planned districts, infrastructure, and mixed-use communities, all of which naturally support the commercial sector. As the population grows and more international residents and investors commit to long-term stays through initiatives such as expanded freehold zones, golden visas, and stable tax regulations, demand for integrated commercial spaces is expected to rise further.
Manal Fraywat, CEO of Relaam, also described 2025 as a strong year for Abu Dhabi’s commercial real estate market, noted for high occupancy levels and sustained investor assurance. The market continued to show healthy absorption of commercial assets, supported by stable rental performance and growing demand from both local and international tenants. Key growth drivers include:
- Robust economic foundations of the emirate
- Continuous demand for professionally managed assets
- A maturing investment environment centered on enduring value
- High occupancy levels across commercial properties, demonstrating market stability
Salem added that mixed-use environments are becoming the dominant urban blueprint in the UAE. Recent studies indicate that such developments account for more than 85% of new urban projects and deliver higher rental yields than single-use zones. Popular real estate market Dubai news today points to a similar trend, with integrated developments combining residential, commercial, and leisure components into unified ecosystems.
