Summary and analysis of the UAE's current office real estate market conditions.
Insight
UAE Office Market Dynamics, Q1 2025
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The tight market, marked by low vacancies and rising rents, is accelerating lease renewals. Tenants are facing pressure to make quick decisions in this competitive environment.
Landlords are substantially raising quoted rates, creating a widening gap between asking rents and tenants’ rental expectations.
In Abu Dhabi average city-wide vacancy rates dropped down to 2.3%, and Prime and Grade A vacancies reached 0.9% and 1.5%, respectively.
Dubai’s city-wide vacancy rates reached a low of 8.6% however prime areas recorded a vacancy rate of 0.2%.