JLL experts highlight landlord advantage in UAE office and retail markets

Dubai, UAE: A tightening supply-demand landscape is reshaping the UAE’s retail and office markets, creating strong conditions for landlords and opening new opportunities for investors, according to JLL’s Q3 2025 market report. With consumer expectations evolving and corporate occupier behavior shifting, both sectors continue to exhibit performance momentum that favours owners of high-quality assets.

Retail Demand Drives Premium Rents

The UAE’s retail inventory, totalling 8.24 million sq m across Abu Dhabi and Dubai, continues to benefit from rising demand for prime, experience-led shopping environments. Strong footfall and tenant turnover at leading destinations are enabling landlords to secure higher rental terms.

In Abu Dhabi, prime super-regional malls recorded a 3.4% annual rise in rents during the year to Q3 2025. Dubai’s strongest assets outperformed sharply, registering a 13.5% increase over the same period. According to JLL, the ongoing preference for top-tier retail formats, coupled with value- and convenience-driven consumer behaviour, is reinforcing the market’s landlord-favourable conditions.

Regional Occupiers Reshape Office Dynamics

Across Abu Dhabi and Dubai, the office market now spans 13.4 million sq m, but supply has not kept pace with shifting demand. Leasing enquiries from regional companies are rising faster than those from international corporates—a trend that benefits landlords, as regional tenants typically demonstrate greater pricing flexibility and readiness to commit to premium spaces.

The report notes that Prime and Grade A properties are approaching the peak of their current rental cycle. Abu Dhabi Prime office rents surged 31.3% year-on-year, while Dubai posted a 16.8% rise up to Q3 2025. Despite the ongoing “flight to quality,” occupiers are increasingly cautious, with some viewing current pricing as difficult to justify within operational budgets.

JLL also highlights an emerging movement among Dubai’s residential developers toward commercial projects, typically located in secondary areas where land availability is more favourable. Many of these new developments adopt strata-title structures, which often do not align with the needs of regional corporates requiring contiguous, institutionally managed space in established business districts.

Market Outlook Remains Resilient

Dana Williamson, Head of Offices, Business Space & Retail – MEA, JLL, commented: “As the UAE’s prime commercial real estate sectors evolve, we anticipate a period of sustained resilience. For investors and developers, achieving success hinges on a deep understanding of the evolving occupier and consumer behaviors, and the ability to implement innovative adaptation strategies in a fast-maturing market. While facing a constrained supply environment across both prime retail and office segments, market sentiment remains positive, offering stakeholders significant opportunities to capitalize on new potent growth avenues for value creation that directly respond to fundamental behavioral shifts.”

With retail performance strengthening and office demand rebalancing in favour of landlords, JLL’s findings suggest that both sectors remain well-positioned heading into 2026—supported by sustained investment appetite, favourable economic indicators, and maturing occupier expectations across the UAE’s commercial landscape.