The UAE commercial property market maintains a robust growth momentum into the third quarter of 2025, as highlighted by the latest RICS Global Commercial Property Monitor. This report confirms that all major sectors are experiencing positive trends, demonstrating the enduring attractiveness of the region for investors and occupiers alike.
Strong Performance Indicators
The UAE’s Commercial Property Sentiment Index (CPSI) recorded a solid reading of +34, closely aligning with its 12-month average and underscoring a consistently optimistic outlook across the market. This positive sentiment is attributed to a combination of resilient occupier demand, limited supply conditions, and increased international investment activity.
Market Dynamics and Trends
As detailed in the report, prime office properties are poised to lead in both rental and capital growth over the next year, with the industrial and retail sectors following closely. With only 14 percent of survey respondents indicating an increase in available leasable space, the constrained supply supports ongoing rental growth within the UAE commercial property market.
Investor Sentiment Remains Positive
Investor enthusiasm remains high, with substantial inquiries from both local and international buyers. The report emphasizes that the UAE continues to attract significant global capital inflows, primarily driven by its efforts in economic diversification and a transparent regulatory environment. This dynamic bodes well for the future of the UAE commercial property market.
Challenges and Future Outlook
Despite an overall positive outlook, valuation pressures have emerged, with 20 percent of participants characterizing the market as “very expensive,” marking the highest proportion in the region. Nonetheless, the general sentiment remains optimistic, supported by burgeoning business activities, a recovering tourism sector, and increasing consumer spending.
Abdullah Al Akaish, Senior Public and Government Affairs Manager at RICS, remarked on the findings, emphasizing the UAE’s continued status as a regional commercial hub. “Market sentiment in the UAE remains firmly positive, with strong evidence of occupier expansion and investment inquiries from both domestic and international buyers,” he noted.
He also pointed out that despite escalating pricing levels, forward-looking indicators are encouraging regarding the sustainability of growth drivers, especially for strategically located prime assets. “The UAE’s diversified economic base, regulatory transparency, and global positioning are supporting sustained investor appetite,” Al Akaish added.
The report concludes with a strong message about the expected capital value gains across all major segments of the UAE commercial property market over the next 12 months, reinforcing its status as one of the most dynamic commercial real estate markets in the Middle East.