UAE Real Estate Market Q3 as office occupancy hits 94% and $38bn Dubai Sales Slowdown
The UAE Real Estate Market continued strong growth in the third quarter of 2025, with strong performance across the commercial, residential, hospitality, and industrial sectors, as well as the industrial sectors, according to CBRE Middle East Real East Real East Real East Real Estrown
Despite limited new supply, the market has shown resilience amid foreign direct investment, non-oil growth, and record tourism numbers, positioning the UAE as one of the world’s most stable and competitive economies.
CRBE noted that the GDP of the UAE is projected to increase by 4.9 percent in the year 2025, supported by strong oil production and 44.2 percent in September, showing continued confidence and investors.
Accommodation: Dubai defends the seasonal trend as sales exceed $38bn
The Dubai Rewards sector recorded 56,723 transactions worth AED139.8bn ($38.1bn) in Q3 – up 16 per cent year-on-year. Off-Plan sales were managed, accounting for 75 percent of all deals, while prices increased by 12.9 percent.
Strong annual growth was observed in Dubai Silicon Oasis and difc, securing demand across established and emerging communities.
In Abu Dhabi, transaction volumes reached a record 6,610 in Q3, a 79-year increase over the year, with both prices and tariffs up more than 25 percent amid strong supply and strong demand.
Commercial Sector: Living Forward and Landlord-Friendly
Dubai’s office market remains largely unexpanded, with an average occupancy of 94 percent and rents increasing by 19 percent year-on-year. Demand in free districts – including DIFC, Dubai Design District (D3), and DMCC – continues to emerge, prompting residents to pursue pre-letting and developers to accelerate construction pipelines.
In Abu Dhabi, the rise of the Abu Dhabi Market The Abu Dhabi market went full steam ahead in Al Maryah Island, where the general tax rose 8 percent per year and prime offices command high premiums.
With the remaining availability limited mainly to finishing the island, living on it has been over a year ago as ADGM-affiliated businesses have sought space nearby.
Matthew green, head of research at mena cbre, said: “The residential development pipeline continues to grow, with rising redundancies now starting to soften the hiring power of companies in certain areas.
“However, commercial markets remain very constrained, and with the exception of significant halvious until 2027 at the earliest, the current landlord-friendly market looks set to continue.”
Hospitality: Record guest numbers and hotel revenue
The UAE’s hospitality sector maintained strong momentum, with the country poised to welcome 27.6m international visitors by 2025.
Both Dubai and Abu Dhabi reported annual occupancy rates of 78 percent, while revenue per available room (recpar) rose 12 percent annually.
Abu Dhabi hotel revenue increased 19 percent to AED4.8bn ($1.31BN), while Ras Al Khaimah saw hospitality revenue increase 9 percent, supported by the opening of a new domestic property and continued domestic tourism.
Retail and Industrial: Compressed Supply, Strong Demand
Properties for sale in Dubai in Dubai and Abu Dhabi remain close to full occupancy, at 97 percent and 95 percent respectively. Taxes rose 5.3 percent in Dubai and 3.3 percent in Abu Dhabi, driven by population growth and tourism-related spending.
The availability of Prime space remains limited, with foreign installations such as skims and the opening of Ulta Beauty in Emirates stores, including exiting tenants as part of active asset management strategies.
The UAE’s industrial sector continues to experience strong growth, with average rents rising by 18 percent in Dubai and 12 percent in Abu Dhabi. Large scale features and production facilities are under construction, with new completions expected to begin in 2026.
Economic Outlook: Continued growth, strategic diversification
The CBRE report highlights that the UAE economy remains on a strong growth trajectory, supported by strategic diversification, strong income, and friendly policies.
A combination of strong tourism, tourism, expanding industrial activity, and a limited commercial offer underscores the UAE’s position as a leading Global destination for business and investment.
