📈 UAE office rents climb as retail vacancy tightens

Dubai and Abu Dhabi office rents rose at a double-digit pace in Q1 2026, while retail vacancy tightened across the UAE, according to JLL. The consultancy said prime commercial markets remained resilient despite broader regional uncertainty.

JLL’s latest market update, published in May 2026, said demand for top-tier office space continued to outpace available supply in key UAE districts. The report also pointed to a firmer retail environment, with vacancy levels tightening in prime shopping locations. Reuters reported the findings through Zawya, citing JLL’s Q1 2026 market review.

Why it matters for investors

The data points to a commercial-property market still being supported by occupier demand, even as the pace of growth begins to normalise from the exceptional momentum seen in 2025. For office owners, double-digit rent growth in core Dubai and Abu Dhabi assets reinforces pricing power in prime stock, while lower retail vacancy suggests landlords with well-located assets can preserve occupancy and defend income. At the same time, the strength is concentrated in the best-in-class segment, which leaves secondary stock more exposed to competition and slower leasing velocity.

➡️ Prime office rents in the UAE are still rising faster than broader regional markets.

➡️ Tight retail vacancy is reinforcing income stability for dominant shopping centres and high-footfall assets.

The market signal is clear: prime UAE commercial real estate remains a relative outperformer, with scarcity in core locations continuing to support rental growth and asset values.