UAE office rents 2025 recorded a sharp rise as demand for premium commercial space outpaced supply across Abu Dhabi and Dubai. According to the latest JLL report, Abu Dhabi led the surge with a 31% increase in prime office rents during Q2 2025, while Dubai’s retail sector expanded by 9% on strong renewals and new contracts. With vacancies at record lows, landlords remain firmly in control of the UAE commercial property market.
UAE Office Rents 2025: Abu Dhabi Surges 31%
Abu Dhabi emerged as the standout performer in Q2 2025. Prime office rents jumped 31% year-on-year, reaching AED 2,905 per square metre (USD 791) annually. Availability is almost non-existent, with prime office vacancy rates at just 0.1%. This highlights how competitive the market has become for businesses seeking Grade A office space in the capital.
UAE Commercial Property 2025: Dubai Retail Growth Accelerates
While Abu Dhabi dominated the office sector, Dubai’s retail market displayed strong resilience. Rents grew by 9% in Q2 2025, driven by a mix of lease renewals and new contracts. Experiential retail concepts, technology-driven fit-outs, and food & beverage expansion have kept demand strong. Vacancy rates are just 0.3%, showing that retail space is operating at near full capacity. For investors, this underscores reliable demand and income stability.
UAE Office Market and Record-Low Vacancy Rates
The commercial property landscape in the UAE is facing exceptionally tight supply. Abu Dhabi’s prime office availability has dropped to only 0.1%, while Dubai sits at 0.3%. These record-low vacancy rates intensify competition for prime locations and give landlords significant leverage. In such an environment, tenants are paying premium prices, and owners are enjoying strong returns.
Drivers Behind UAE Office Rental Growth
Several forces explain the surge in UAE office rents 2025. These include:
- Investor confidence: Multinational companies view the UAE as a safe and profitable hub.
- Limited new supply: Few Grade A office projects are being added to the pipeline.
- Retail innovation: Experiential spaces and F&B growth continue to support demand.
- Technology hubs: Both Dubai and Abu Dhabi attract firms seeking regional headquarters.
- Business-friendly reforms: Government policies make the UAE a top destination for global corporations.
Investment Outlook for UAE Office Rents 2025
For overseas investors, the growth in UAE office rents 2025 presents an attractive opportunity. With landlords holding the advantage, returns are supported by low vacancy risk and rising rental yields. This creates a favorable landscape for investors seeking stable, long-term income from commercial property.
Key Investor Signals
- Double-digit rent growth in Abu Dhabi demonstrates income potential.
- Vacancy rates below 1% reduce risk for landlords.
- Dubai’s strong retail momentum provides diversification opportunities.
- Continued expansion of global firms ensures demand stability.
UAE Office Rents 2025: Comparing Abu Dhabi and Dubai
Although both cities are thriving, their growth is driven by different dynamics. Abu Dhabi’s surge reflects a limited office pipeline and rising demand from financial and energy sectors. Dubai, meanwhile, benefits from tourism recovery, a diverse business ecosystem, and a vibrant retail market. Together, these factors create a strong nationwide outlook for investors.
UAE Office Rents 2025: Market Outlook
The second half of 2025 is likely to extend these positive trends. Without major new supply, rents are expected to climb further in both Abu Dhabi and Dubai. Retail will also remain buoyant as international brands expand into the UAE. Overall, the outlook reinforces the country’s reputation as one of the most attractive global markets for commercial real estate investment.
Final Thoughts on UAE Office Rents 2025
The rise in UAE office rents 2025 reflects more than just a quarterly trend—it signals the structural strength of the country’s commercial property sector. Limited supply, strong tenant demand, and global investor appetite are creating an environment where landlords benefit from premium pricing and minimal vacancy risk. For investors seeking growth and security, Abu Dhabi and Dubai stand out as top choices in 2025.
Partner with Jarsmak Property Management
At Jarsmak, we specialize in helping overseas investors manage their Dubai properties with transparency and professionalism. From sourcing opportunities to handling rent collection, maintenance, and tenant relations, we provide end-to-end property management solutions that maximize returns.
Ready to take advantage of the UAE’s booming office and retail market? Contact Jarsmak today to explore tailored commercial investment opportunities.
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