UAE Retail Rents Surge as Abu Dhabi and Dubai Enter a New Era of Landlord Dominance

JLL’s Q3 2025 report reveals soaring demand, tightening supply, and rising rents across the UAE’s office and retail sectors

The UAE’s real estate market is entering a new phase of accelerated growth, with Abu Dhabi and Dubai witnessing a sharp rise in retail and office rents, according to JLL’s newly released Q3 2025 market report. As demand continues to outpace supply, landlords across both emirates are gaining unprecedented pricing power, signalling a shift in the region’s commercial property landscape.

In Dubai, the office market remains one of the most dynamic in the world, bolstered by the emirate’s strategic global positioning, robust infrastructure, and business-friendly regulations. With multinational companies increasingly expanding their regional footprint, high-quality office spaces in key districts — including Business Bay, DIFC, and Dubai Internet City — are experiencing heightened occupancy levels and rising leasing rates. The city’s thriving business environment continues to attract global enterprises seeking long-term stability and prime corporate presence.

Retail spaces across Abu Dhabi and Dubai are experiencing similar momentum. The sector is benefiting from a surge in consumer spending, evolving lifestyle preferences, and robust tourism flows, driving demand for well-located and experiential retail destinations. As available prime retail stock remains limited, rental rates are climbing steadily, solidifying landlords’ negotiating leverage. Leading malls and community retail hubs are reporting record-low vacancy rates and increased pre-leasing activity for upcoming developments.

JLL’s report highlights how shifting tenant behaviour is also shaping the current landscape. Corporates are prioritising high-quality, flexible spaces that boost productivity and align with hybrid working models, while retailers are investing more heavily in physical experience-based strategies to complement digital sales channels.

Together, these factors are creatin

g an environment where rental appreciation is set to continue, especially within Grade A commercial assets and top-tier retail locations. As the UAE prepares for sustained economic expansion and rising investor confidence, the outlook for the commercial property sector remains strong.

With demand intensifying and supply pipelines tightening, Abu Dhabi and Dubai’s commercial real estate markets are poised for further growth — reinforcing the UAE’s position as one of the world’s most resilient and forward-looking property destinations.