The United Arab Emirates (UAE) continues to solidify its status as a leading commercial real estate hub, with the third quarter of 2025 showcasing sustained growth across its commercial property market. According to the latest data from the RICS Global Commercial Property Monitor, the UAE’s Commercial Property Sentiment Index (CPSI) recorded a positive reading of +34, indicating ongoing optimism and stability within the market.

This consistent growth trajectory is attributed to a combination of resilient occupier demand, constrained supply, and a surge in international investment activity. The UAE’s strategic economic diversification and transparent regulatory framework remain pivotal in attracting global capital inflows, further cementing its position as a regional powerhouse in commercial real estate.

Office Sector Leads the Charge

The office sector continues to be a frontrunner in the UAE’s commercial property market. Prime office properties are expected to spearhead rental and capital growth over the next year. The report highlights that office occupancy rates have reached an impressive 94%, underscoring the high demand for quality office space. This demand is driven by both local and international businesses seeking to establish or expand their presence in the UAE.

Despite the high occupancy rates, only 14% of survey respondents reported an increase in available leasable space, indicating a tight supply environment. This scarcity is a key factor underpinning rental growth, as businesses compete for limited prime office locations.

Industrial and Retail Sectors Show Promise

Following closely behind the office sector, industrial and retail assets are also poised for growth. The industrial sector benefits from the UAE’s strategic location as a global logistics hub, while the retail sector is buoyed by a recovering tourism industry and rising consumer spending.

The report suggests that these sectors will continue to experience capital value gains over the coming year, supported by expanding business activities and a favorable economic environment. The UAE’s commitment to infrastructure development and innovation further enhances the attractiveness of these sectors to investors.

Investor Sentiment Remains Upbeat

Investor confidence in the UAE’s commercial property market remains robust, with strong enquiry levels from both domestic and international buyers. The country’s diversified economic base and regulatory transparency are key factors driving sustained investor appetite.

However, the report does caution about emerging valuation pressures, with 20% of respondents describing the market as “very expensive.” This marks the highest proportion recorded in the region, highlighting the need for careful consideration of pricing levels. Despite these concerns, the overall outlook remains positive, with forward-looking indicators suggesting confidence in the sustainability of growth drivers, particularly for prime and strategically located assets.

Enduring Appeal as a Regional Hub

Abdullah Al Akaish, Senior Public and Government Affairs Manager at RICS, emphasized the UAE’s enduring appeal as a regional commercial hub. “Market sentiment in the UAE remains firmly positive, with strong evidence of occupier expansion and investment enquiries from both domestic and international buyers,” he stated. Al Akaish also noted that the UAE’s diversified economic base and global positioning are key factors supporting sustained investor interest.

The report concludes that the UAE’s commercial real estate market is set to maintain its dynamic growth, with most respondents expecting capital value gains across all major market segments over the next 12 months. This optimistic outlook reinforces the UAE’s status as one of the most vibrant commercial real estate markets in the Middle East.

As the UAE continues to attract global capital and foster a business-friendly environment, its commercial property market is well-positioned to thrive. The combination of economic diversification, regulatory transparency, and strategic location ensures that the UAE remains a top destination for investors seeking growth opportunities in the region.

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