A CBRE Middle East review released in April 2026 found that the UAE property market held firm through the first three months of the year even as geopolitical developments affected sentiment in March. The assessment recorded persistent shortages of Grade A office space and industrial facilities that continued to support occupancy rates and rental levels across Dubai and Abu Dhabi. Macroeconomic conditions featured contained inflation alongside strong liquidity and policy backing that helped stabilise financial markets. The review noted a downward revision in full-year GDP growth expectations to 0.3 percent while international capital inflows persisted.
Office conditions proved particularly robust with Dubai average rents climbing 14 percent year on year and prime rents advancing 16 percent as occupancy hovered near 95 percent according to CBRE figures. Abu Dhabi posted even higher occupancy at 98 percent alongside a 12 percent increase in average rents with only limited new supply scheduled before 2027. Matthew Green head of research at CBRE Mena said “Recent geopolitical developments have influenced sentiment and short-term activity but the UAE real estate market has showcased its inherent stability.” He added that structural undersupply institutional strength and sustained international capital inflows continue to reinforce the market.
More than 45000 residential transactions valued at roughly Dh137 billion took place in Dubai during the quarter with off-plan sales in mid-market communities forming the largest share the CBRE review reported. Annual price growth eased to around 9 percent while rental growth moderated to 4.1 percent signalling a move toward more measured expansion after earlier rapid increases. Overseas investors maintained interest in new launches seeking longer-term exposure to the emirate’s development. Savills data compiled from the Dubai Land Department showed off-plan properties accounted for 72 percent of all residential transactions in the period.
Hospitality performance carried forward from a record 2025 when Dubai received 19.6 million visitors with hotel occupancy at 80.7 percent and revenue per available room rising 11 percent according to the CBRE assessment. Abu Dhabi drew nearly six million visitors last year while Ras Al Khaimah recorded 1.36 million arrivals. Nationwide occupancy averaged approximately 85 percent in January and February of 2026 before March shifts prompted operators to emphasise domestic tourism and staycations to protect revenues.
Retail properties displayed stability with prime mall occupancy reaching 98 percent in Dubai and 95 percent in Abu Dhabi as tenant confidence endured the CBRE report indicated. Landmark openings including Primark’s UAE entry and related entrepreneurship programmes further supported the sector’s pipeline. Industrial and logistics assets delivered the strongest gains with double-digit rental increases across Dubai clusters and steady advances in Abu Dhabi amid rising manufacturing activity and inventory localisation by international firms. Demand for Grade A warehousing intensified as companies adjusted distribution networks to evolving trade dynamics.
The Central Bank of the UAE projected economic growth at 1.7 percent for 2026 followed by a rebound to 9.8 percent in 2027 in a separate forecast released later in the year. CBRE analysts expect fiscal buffers institutional stability and global capital flows to continue underpinning the property sector with a sharper recovery anticipated in 2027 as trade routes normalise. Dubai property transactions exceeded Dh680 billion across the full year of 2025 according to industry compilations providing a strong base entering the current period.
