CBRE Q1 2026 Report: UAE Real Estate Defies Regional Tensions with Strong Occupancy and Rent Hikes
According to the latest CBRE Middle East market review, the UAE real estate sector demonstrated remarkable resilience during the first quarter of 2026, maintaining stability despite a downgraded GDP growth forecast of 0.3%. The report attributes this performance to robust liquidity and effective policy interventions that have shielded the economy from the brunt of regional geopolitical volatility. While logistics and non-oil sectors faced headwinds, the financial foundations remained unshaken, supported by the Central Bank's AED 1 trillion asset base and its "Five-Pillar Resilience Package."
The office market in Dubai and Abu Dhabi emerged as a standout performer, driven by a persistent supply shortage. In Dubai, average office rents surged by 14% year-on-year, while prime assets saw a 16% increase, with occupancy rates hovering near 95%. CBRE notes that despite temporary shifts toward remote work by some multinationals, the demand for Grade A office space in central business districts remains significantly higher than available supply, keeping the market firmly in favor of landlords. S&P Global Ratings further bolstered market confidence by reaffirming the UAE’s AA/A-1+ stable rating, citing the nation’s strategic fiscal buffers.