THE UAE’s real estate sector remained resilient in the first quarter of 2026 despite conflict in the Middle East, while office markets in Dubai and Abu Dhabi remained tight due to limited new supply, according to CBRE, reports the Arab News.
In its latest report, the real estate consultancy said that average office rents in Dubai rose 14 per cent year on year in the first quarter, while prime rents increased by 16pc, with occupancy holding at approximately 95pc.
The shortage of office space also highlights the UAE’s status as a regional business haven, even as some infrastructure in Dubai and Abu Dhabi was affected by the recent conflict, causing limited casualties and short-term disruption.
In March, several multinational giants, including Amazon, Google and Citigroup, as well as JPMorgan, activated remote work protocols to mitigate the impact of the war in the region.
“Recent geopolitical developments have undeniably influenced sentiment and short-term activity, but the UAE real estate market has showcased its inherent stability,” said Matthew Green, head of research at CBRE for the Middle East and North Africa region.
He added that the UAE real estate market fundamentals remain exceptionally strong, supported by structural undersupply across asset classes, proactive government policies, contained inflation, robust liquidity, and the UAE’s established role as a global investment hub.
According to the report, Abu Dhabi’s office market showed strong resilience amid conflict, with occupancy rates reaching 98pc and average rents rising 12pc year on year in the first quarter.
CBRE noted that a limited development pipeline through 2027 is likely to keep market conditions tight.
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