Fresh insights from the RICS Global Commercial Property Monitor reveal sustained growth across the UAE’s office, industrial, and retail property sectors during the third quarter of 2025. Occupier demand and investor confidence remain robust, highlighting the country’s resilience in a dynamic global market.
Steady Market Confidence Reflected in Key Indicators
The UAE’s Commercial Property Sentiment Index (CPSI) registered a reading of +34, aligning closely with the year’s average and underscoring stable optimism within the sector. This performance reflects a balanced expansion, fueled by healthy occupier demand, limited supply, and increasing international investment activity.
Prime Offices Leading the Way
According to the report, prime office spaces are projected to record the strongest rental and capital appreciation over the next 12 months, followed by industrial and retail assets. Only 14% of respondents noted a rise in available leasable space, indicating ongoing supply constraints that continue to support rental growth.
Investor Confidence Strengthens
Investor sentiment remains buoyant, with high levels of enquiries from both domestic and overseas investors. The UAE continues to attract significant cross-border capital, driven by its diversified economy, strategic global positioning, and transparent regulatory framework.
Emerging Valuation Pressures
While the market outlook is largely positive, valuation pressures are becoming evident. Around 20% of respondents now consider the market “very expensive”, the highest figure recorded in the region. Despite this, the sector’s momentum is expected to persist, supported by expanding business activity, a robust tourism rebound, and rising consumer expenditure.
Expert Insights on Market Outlook
An expert from RICS noted that the latest findings reaffirm the UAE’s strong reputation as a commercial hub in the Middle East. “Market sentiment remains optimistic, with continued occupier expansion and growing investment interest from both local and global buyers,” the expert stated.
They further emphasized that, although prices have increased, forward-looking indicators point toward the sustainability of growth, particularly for high-quality and strategically positioned properties. “The UAE’s diversified economic foundation, transparency, and international connectivity continue to drive investor confidence,” the expert added.
Positive Long-Term Expectations
The RICS report concludes that most market participants anticipate capital value gains across all major property segments over the next year, reinforcing the UAE’s position as one of the most dynamic and competitive commercial real estate markets in the region.
Source: https://www.arabianbusiness.com/industries/real-estate/uae-commercial-property-market-sustains-growth-momentum-in-q3-2025
