The latest Royal Institution of Chartered Surveyors’ (RICS) Global Commercial Property Monitor found the UAE continuing to post some of the most elevated results across all nations covered in the monitor, with recent robust impetus showing little sign of easing.
Overall occupier demand remained in firm growth territory, recording a +57% result (net aggregate sentiment), with offices leading the pack at +72%, while industrial and retail property recorded +53% and +47%, respectively.
These figures demonstrate healthy demand levels that are firm throughout each development type, but especially among offices.
All key figures demonstrate a continued trend of firm growth, whilst interest from international investors appears to have become exceptionally strong (+63%).
Whilst the office sector is outperforming others on all key metrics, the good health of the UAE’s industrial property sector cannot be ignored. Dubai Industrial City launched an approximately 1.3 million-square-metre expansion to accommodate ongoing demand growth for industrial and logistics assets.
Respondents noted a growing emphasis on sustainability in the market, with a noticeable shift towards green building practices. Developers and contractors are increasingly incorporating energy-efficient designs and sustainable materials, aligning with global environmental standards.
Indeed, Expo City Dubai signed an agreement with RICS in October to implement the institution’s award-winning Whole Life Carbon Assessment (WLCA) standard, demonstrating a deep commitment to sustainability practices in one of the UAE’s leading commercial developments.
Looking to the future, capital and rent value expectations over both three months and 12 months ahead are consistently strong, with no sign of slowdown for the foreseeable future.
RICS Senior Public Affairs Officer, Abdullah Akaish, said: “With exceptional demand driving growth in the UAE’s commercial property market, the Q3 findings showcase the country’s strong momentum in sectors like offices (+72%), industrial (+53%), and retail (+47%). This highlights the UAE’s pivotal role as a regional leader in commercial real estate.
“Increased international interest (+63%) further cements its appeal, attracting capital flows that reinforce sustainable economic growth. To maintain this upward trajectory, policy makers should prioritise sustainability-focused incentives and regulatory clarity to support green building practices.
“The recent RICS-Expo City Dubai partnership on the Whole Life Carbon Assessment (WLCA) standard marks a key milestone. Expanding this standard to a national level could drive wider adoption of sustainable development practices, align with investor expectations, and further enhance the UAE’s reputation as a forward-looking market.
“Encouraging flexible zoning laws and incentivising renewable energy use will also enable continued growth while ensuring the UAE’s real estate sector remains competitive and resilient in a global context,” Akaish added.
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