Demand from regional companies is steadily increasingly at a faster rate compared to large international corporates. Although, regional players who have typically demonstrated more flexibility in terms of absorbing higher rental costs are also being cost sensitive.

Both Dubai and Abu Dhabi experienced significant vacancy rate declines driven by strong demand and limited supply, enforcing a landlord-favourable market position, this is likely to remain the case until any significant new supply enters the market.

Market dynamics suggest rental growth may be reaching its peak, as tenants increasingly view current growth rates as unsustainable compared to their CRE budgets, particularly for Prime and Grade A space.

Dubai noted new project launches, primarily located outside its core Central Business Districts. These developments predominantly use strata-title ownership structures, which generally do not meet the requirements of regional companies and large corporate tenants.