The recent surge in UAE retail rents highlights a dynamic shift in the real estate landscape of Abu Dhabi and Dubai, as demand consistently outstrips supply. This trend, characterized by increasing interest in premium retail spaces, shows no signs of abating according to JLL’s latest Q3 2025 market report. With changing consumer behaviors and evolving corporate leasing needs, the retail sector is experiencing robust rental growth, reshaping the shopping experience across the Emirates.
UAE Retail Real Estate
Abu Dhabi and Dubai are now home to a combined retail inventory totaling 8.24 million square meters, where the demand for high-performing spaces is driving rent increases across various categories. In Abu Dhabi, prime super-regional malls saw a year-on-year rental increase of 3.4% as of Q3 2025, maintaining a competitive edge over other retail formats. Conversely, Dubai experienced a more pronounced upward trend, with prime retail rents soaring by 13.5% during the same period. This landlord-favored environment is particularly noticeable in prime retail assets and busy shopping centers, where consistent foot traffic and turnover bolster rental growth.
UAE Office Market
Within Abu Dhabi and Dubai’s 13.4 million square meters of office space, JLL has observed a significant shift in leasing inquiries. Regional companies are now driving demand at a faster rate than large international corporations, giving landlords more leverage in terms of pricing. JLL’s Office Market Dynamics report suggests we might be nearing a cyclical peak in rental growth, particularly in the Prime and Grade A segments. Notably, prime rents in Abu Dhabi have surged by 31.3% year-on-year, while Dubai witnessed a 16.8% increase as of Q3 2025—figures that some businesses are beginning to find unsustainable against their operational budgets.
Another emerging trend is the diversification of residential developers into commercial projects, especially in secondary locations with more favorable land availability. However, these developments often do not meet the needs of regional and multinational companies that typically favor consolidated spaces in central business districts.
Market Outlook
Dana Williamson, Head of Offices, Business Space and Retail – MEA at JLL, stated, “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.”
Williamson further added, “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 growth avenues for value creation that respond directly to fundamental behavioral shifts.” As demand continues to outpace supply, the prospect for UAE retail rents in Abu Dhabi and Dubai remains favorable, setting the stage for further developments in the coming quarters.