Construction & Real Estate

Strong office demand, tight supply continue to drive UAE real estate markets

DUBAI
Strong office demand, tight supply continue to drive UAE real estate markets

CBRE Middle East, the global leader in commercial real estate services, released its UAE Real Estate Market Review for the third quarter of 2026, highlighting the resilience of the country's real estate market, supported by robust occupier demand, a diversified economic base and sustained investor interest, despite a more complex macroeconomic and geopolitical environment.

While economic activity across the region has been impacted by ongoing geopolitical uncertainty, the UAE continues to benefit from a diversified non-oil economy, a business-friendly environment and its position as a leading hub for trade, technology, finance and investment. These factors have helped support market activity across several real estate sectors, particularly office and industrial & logistics assets.

The non-oil economy remained the primary driver of growth during the third quarter, with non-oil activities accounting for 79% of the UAE economy. Business activity also remained healthy, with the UAE Purchasing Managers' Index (PMI) reaching 55.3 in both August and September, a 20-month high, signaling continued expansion across the non-oil private sector. The country's ability to attract businesses, investors and skilled talent continues to underpin occupier demand and support long-term real estate fundamentals.

Office Markets across both Dubai and Abu Dhabi remained the strongest-performing asset class during the quarter, driven by robust demand for high-quality space and a shortage of Grade A supply in key business districts.