The UAE’s commercial property market continued to perform strongly in the third quarter of 2025, maintaining its growth trajectory across all major sectors, according to the latest RICS Global Commercial Property Monitor.
The country’s Commercial Property Sentiment Index (CPSI) recorded a reading of +34, broadly in line with its 12-month average, reflecting consistent optimism across the market. The results highlight a broad-based upturn supported by resilient occupier demand, tight supply conditions, and rising international investment activity.
According to the report, prime office properties are expected to lead rental and capital growth over the next year, followed by industrial and retail assets. Only 14 per cent of survey respondents reported an increase in available leasable space, suggesting a constrained supply environment that continues to underpin rental growth.
Investor sentiment also remained upbeat, with strong enquiry levels from both local and international buyers. The report noted that the UAE continues to attract global capital inflows, driven by its economic diversification and transparent regulatory framework.
However, valuation pressures are emerging, with 20 per cent of respondents describing the market as “very expensive”, the highest proportion recorded in the region. Despite these concerns, the outlook remains positive, supported by expanding business activity, tourism recovery, and growing consumer spending.
Abdullah Al Akaish, Senior Public and Government Affairs Manager at RICS, said the findings underscore the UAE’s enduring appeal as a regional commercial hub. “Market sentiment in the UAE remains firmly positive, with strong evidence of occupier expansion and investment enquiries from both domestic and international buyers,” he said.
“The data reinforces the UAE’s position as a leading commercial hub with ongoing growth potential.”
He added that while pricing levels have risen, forward-looking indicators suggest confidence in the sustainability of growth drivers, particularly for prime and strategically located assets.
“The UAE’s diversified economic base, regulatory transparency, and global positioning are supporting sustained investor appetite,” Al Akaish said.
The report concludes that most respondents expect capital value gains across all major market segments over the coming 12 months, cementing the UAE’s status as one of the most dynamic commercial real estate markets in the Middle East.
