The UAE’s commercial real estate market noticed report momentum in Q2 2025, with workplace rents in Abu Dhabi leaping 31 per cent and Dubai retail contracts up 9 per cent, as vacancies hit historic lows, in accordance with JLL.
Dana Williamson, Head of Workplaces, Enterprise House and Retail, MEA at JLL, stated: “The UAE’s business market is present process dynamic shifts, fuelled by altering client and end-user expectations, that are driving progress and unlocking new avenues for funding.
“Whereas supply-demand imbalances within the Workplaces sector proceed to exert downward strain on rental values, demand for prime, strategically situated workplace areas stays robust, underscoring the continuing ‘flight to high quality.’
UAE business actual property
“Within the Retail sector, the rising emphasis on immersive and differentiated client experiences is creating fertile floor for the emergence of modern ideas and evolving traits.”
Each Abu Dhabi and Dubai are projected to keep up landlord-favourable situations within the brief to medium time period. In Abu Dhabi, prime workplace rents reached AED2,905 ($791)sqm every year in Q2 2025 — a 31.5 per cent year-on-year improve. Grade A and B rents grew by 7.8 per cent and 10.9 per cent respectively.
In Dubai, rental charges elevated throughout all segments: prime rents by 17.3 per cent, Grade A and B by 19.5 per cent and 16 per cent, and Grade C by 22.9 per cent. The hole between prime and Grade A rents has widened to 73.3 per cent in Abu Dhabi and 50.8 per cent in Dubai.
Emptiness charges stay extraordinarily tight. Abu Dhabi recorded simply 1.5 per cent citywide, with prime workplace availability at 0.1 per cent. In Dubai, prime vacancies are solely 0.3 per cent, with the general metropolis emptiness fee at 7.7 per cent.
Lease exercise fell year-on-year in each cities — down 19.1 per cent in Dubai and 1.9 per cent in Abu Dhabi — as tenants rushed to safe renewals. Renewals grew by 0.8 per cent in Abu Dhabi and eight.3 per cent in Dubai.
With excessive rents and restricted availability in prime retail areas, landlords are anticipated to stay in management within the brief to medium time period.
Abu Dhabi noticed a 12.1 per cent decline in new rental contract registrations in Q2 2025, whereas Dubai’s retail market accelerated with a 9 per cent year-on-year rise, pushed by an 11.9 per cent improve in renewals and a 2.3 per cent improve in new contracts.
Emptiness charges declined to round 9 per cent in Abu Dhabi and seven.5 per cent in Dubai. Prime tremendous regional retail rents rose by 3.4 per cent to AED5,524 ($1,505) sqm in Abu Dhabi, whereas Dubai posted a sharper 15.1 per cent improve to AED 826 ($225) sqft.
Complete current retail stock within the two emirates stands at 8.13 million sqm., with 98,000 sqm. of recent inventory due earlier than year-end.
JLL notes that retailers are utilizing knowledge analytics and tech innovation to create extra personalised procuring experiences. Bodily shops are more and more designed as experiential locations, whereas F&B operators are increasing house allocations.
Builders are changing former meals courts into household leisure zones with extra informal and upper-casual eating.
One other rising pattern is the enlargement of e-commerce gamers into bodily showrooms, which double as micro-fulfilment centres for fast native deliveries and in-store pickups.