📈 UAE Real Estate 1Q 2026: Double-Digit Office Rent Growth & Tight Retail Vacancies

Strong market fundamentals drove resilience across prime office and retail segments in Dubai and Abu Dhabi in 1Q 2026, navigating broader regional uncertainties based on JLL data. • Office Sector Figures & Breakdown: Rental Rates: Dubai Grade B spaces led rental appreciation with an increase of 23.4% YoY, followed by Grade A (+19.0%) and Prime (+17.2%). Abu Dhabi prime office rents saw an 11.7% YoY appreciation, with Grade A up 5.1% and Grade B up 4.2%. Inventory & Vacancy: Dubai office stock reached 101.1 million sq ft with citywide vacancy at 7.3% (prime at 0.7%). Abu Dhabi office stock expanded to 4.18 million sqm, keeping citywide vacancy exceptionally tight at 1.4% (prime at 0.1%). Registrations: Heightened occupier caution saw rental contract registrations drop YoY by 6.0% in Abu Dhabi and 7.7% in Dubai. However, Dubai contract renewals rose 11.2% YoY, showing existing occupier confidence. • Retail Sector Breakdown: Dubai: Existing retail inventory stood at 56 million sq ft, with citywide vacancy tightening to 4.8%. Super-regional malls recorded strong performance with 12.4% annual rental growth. Abu Dhabi: Maintained a stable retail vacancy rate of 8.9%. Prime super-regional malls sustained premium positioning at AED 5,524 per sqm. Dynamics: Domestic-focused segments, experiential concepts, and community centres remained resilient, supported by stimulus measures and flexible lease structures, while tourism-dependent categories faced softer conditions.