The UAE real estate market in 2025 was shaped by constrained supply, driving strong rental growth across office and industrial segments, while residential price and rental growth eased amid record completions and a substantial development pipeline, resulting in more balanced market conditions.
Dubai, UAE, December 16, 2025 /MarketersMEDIA/ — The UAE’s property market continues to display resilient fundamentals across office, industrial, and residential sectors, supported by limited availability, high occupancy rates, and shifting occupier preferences. These insights were shared by Prathyusha Gurrapu, Head of Research at Cushman & Wakefield, during a recent market update.
According to Cushman & Wakefield’s research, office markets in both Dubai and Abu Dhabi remain exceptionally tight, with occupancy levels holding at 92% in each city. The lack of new supply—particularly well-located, single-owned Grade A offices—has fueled strong rental growth and reinforced landlord-favourable conditions. Demand for office space in Dubai has intensified as tenants compete for a shrinking pool of high-quality assets, pushing prime rents upward.
Data from Cushman & Wakefield indicates that office rental values rose by 19% year-on-year in Dubai and 29% in Abu Dhabi. Meanwhile, demand for office properties for sale in Dubai continues to accelerate, especially for single-owned Grade A buildings, as investors target income-generating assets in supply-constrained markets.
“Restricted new office supply and extremely tight conditions are continuing to underpin the performance of both Dubai and Abu Dhabi’s office markets,” said Prathyusha Gurrapu, Head of Research at Cushman & Wakefield.
“Well-located, single-owned Grade A offices remain the most in-demand assets,” she added.
The industrial and logistics sector has emerged as the UAE’s strongest-performing real estate segment. Occupancy levels are near 95% in both Dubai and Abu Dhabi, while rents recorded year-on-year growth of 18% in Dubai and 13% in Abu Dhabi.
“Industrial assets are consistently outperforming the wider market, driven by robust occupier demand and limited supply,” Gurrapu explained.
“There is also a clear shift toward build-to-suit developments and early leasing commitments, with occupiers securing space well ahead of project completion.”
In contrast, the residential market is transitioning into a more sustainable phase after several years of rapid expansion. Sales prices increased by 13% year-on-year, while rental growth moderated to 6%. Prime areas continue to lead performance, with Palm Jumeirah and Downtown Dubai outperforming due to their central locations and restricted supply.
“Prime locations such as Palm Jumeirah and Downtown Dubai continue to outperform the broader market, supported by strong demand and limited availability,” Gurrapu noted.
On the supply side, 2025 marked a five-year peak in residential completions, with approximately 44,000 new units delivered. Looking ahead, around 69,000 additional units are expected to be completed in 2026, which is likely to further moderate growth in both sales prices and rents.
“With residential supply reaching a five-year high and a substantial pipeline planned for 2026, we expect continued easing in both rental and sales price growth,” Gurrapu concluded.
About the Company:
Cushman & Wakefield (NYSE: CWK) is a global leader in commercial real estate services, supporting property owners and occupiers through its extensive portfolio of services, including leasing, capital markets, valuation, and property and facilities management. The firm employs approximately 52,000 professionals across nearly 400 offices in 60 countries and reported revenues of $9.5 billion in 2023. Cushman & Wakefield Core operates as an independently owned and managed affiliate in the UAE, bringing over 17 years of regional market expertise.
