• Prime retail spaces command substantial rental premium in both Abu Dhabi and Dubai over Grade A and B assets
  • Within the Office sector, vacancy levels reach record lows of 1.5% in Abu Dhabi, while citywide vacancy rates in Dubai declined to 7.1% in Q3

Dubai, UAE – The current supply-demand imbalance in the UAE’s office and retail markets presents a clear pathway for agile investors and developers to unlock significant new value and drive resilient, long-term growth, reveals JLL's latest Q3 2025 report. Fueled by evolving consumer preferences, corporate priorities, and current market dynamics, the ongoing transformations create a competitive leasing environment in the two landlord-favored sectors.

A shift in consumer behavior alongside a growing focus on value and convenience in retail formats is shaping the 8.24 million sq m retail inventory in Abu Dhabi and Dubai. Backed by strong demand for prime retail spaces, landlords are negotiating higher rental rates. In Abu Dhabi, prime super regional malls maintained premium over other categories with a 3.4% rental increase in the year to Q3 2025 while Dubai experienced a substantial 13.5% rise in the same period. This landlord-favored environment is evident across prime retail properties and successful shopping centers that draw strong footfall and turnover for tenants.

Demand shifts in office market

Dubai and Abu Dhabi’s 13.4 million square meter office inventory is witnessing a sharp shift in demand composition, with leasing inquiries from regional companies increasing at a faster rate compared to large international corporates. This transition is favorable for landlords, as regional occupiers often demonstrate greater rental rate flexibility and willingness than international occupiers to accept premium pricing structures.

JLL’s Office Market Dynamics report reveals that the rate of rental growth in the two emirates may be reaching its cyclical peak, particularly for Prime and Grade A spaces. Reflecting a flight-to-quality trend, Prime rents in Abu Dhabi surged 31.3% year-on-year, while Dubai experienced a 16.8% rise in the year to Q3 2025. Occupiers are increasingly viewing these prices as unsustainable within their operational budgets.

Another emerging trend sees Dubai's residential developers diversifying into the commercial sector, often in secondary locations where land availability and development opportunities are more favorable. These new projects predominantly use strata-title ownership structures, which generally do not meet the requirements of regional companies and large corporate tenants seeking consolidated spaces in Central Business Districts.

Dana Williamson, Head of Offices, Business Space & Retail – MEA, JLL, said: “As the UAE’s prime commercial real estate sectors evolve, we anticipate a period of sustained resilience. For investors and developers, achieving success hinges on a deep understanding of the evolving occupier and consumer behaviors, and the ability to implement innovative adaptation strategies in a fast-maturing market. While facing a constrained supply environment across both prime retail and office segments, market sentiment remains positive, offering stakeholders significant opportunities to capitalize on new potent growth avenues for value creation that directly respond to fundamental behavioral shifts.”

About JLL

For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage, and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500 company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 111,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com

About JLL MEA

Across the Middle East and Africa (MEA) JLL is a leading player in the real estate and hospitality services markets. The firm has worked in 35 countries across the region and employs over 2000 internationally qualified professionals across its offices in Dubai, Abu Dhabi, Riyadh, Jeddah, Al Khobar, Cairo, Casablanca, Cape Town, Johannesburg, and Nairobi. For further information, visit.

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Media Contact:
Medha Sandrasagara
JLL MEA | +971 55 7771857
Medha.Sandrasagara@jll.com

Atrayee Roy Choudhury
Burson | +971 509105971
jll-mena@bursonglobal.com