UAE Office Rents Surge Amid Supply Constraints and Geopolitical Tensions

Summary:

The UAE's office market experienced significant rental growth in Q2 2026, with Dubai rents rising 13% and Abu Dhabi rents increasing nearly 16%, driven by supply constraints and high occupancy rates. Despite a forecasted GDP contraction of 0.04% due to geopolitical tensions, the real estate sector remains resilient. Residential markets showed mixed results, with Dubai's sales declining 29% year-on-year, while Abu Dhabi's values rose 21.6%. The retail sector faced pressures from tourism declines, yet occupancy remained high. Industrial markets thrived due to government initiatives and foreign investment, maintaining strong rental growth.