Cushman & Wakefield Core’s latest UAE Logistics & Industrial Market Update 2025/2026 highlights a new phase of growth across the country’s logistics, industrial, and office sectors, driven by record-high occupancy, limited new supply, and sustained investor confidence.
Read the full report here: UAE Logistics & Industrial Market Update 2025/2026
UAE Industrial & Logistics Sector: 95% Occupancy and Strong Pre-Leasing Activity
The UAE’s industrial and logistics sector continues to strengthen, with Grade A occupancy averaging 95% and rents increasing 18% in Dubai and 13% in Abu Dhabi year-on-year.
Despite ongoing development, most upcoming projects are already pre-leased, underscoring deep market demand and limited prime availability.
In Dubai, institutional developers are delivering more than 7 million sq. ft. of new stock across Al Warsan, National Industries Park, and Dubai South, with occupiers favouring 10,000–50,000 sq. ft. facilities for flexibility and speed to market.
In Abu Dhabi, strategic zones such as KEZAD, ADAFZ, and Musaffah are seeing rapid absorption, with KEZAD reaching 98% occupancy and a 35% increase in leasing activity, supported by multimodal links to Khalifa Port and Etihad Rail.
Occupiers are adapting to a tight market by relocating to cost-efficient Northern Emirates or commissioning build-to-suit facilities to ensure long-term control.
Dubai Office Market: Supply Constraints Push Rents to Record Levels
As of Q3 2025, Dubai’s office market remains highly constrained, with only 770,000 sq. ft. of new supply delivered this year, primarily Dubai CommerCity and Wasl Tower, both achieving strong pre-sales and investor interest.
No major new completions are expected before 2027, keeping vacancy at historic lows.
Grade A office occupancy stands at 95.5%, with overall citywide occupancy averaging 92.4%.
Average capital values for prime commercial assets have increased by nearly 18% year-on-year, led by DIFC, One Central, and Downtown Dubai, where institutional-grade stock remains limited.
Amid sustained occupier and investor demand, the market for offices for sale in Dubai continues to strengthen, supported by rising yields and growing interest in freehold commercial ownership.
Abu Dhabi Office Market: Investor Confidence Strengthens Amid Limited Supply
Abu Dhabi’s office sector continues to face a supply-demand imbalance, with few new completions in 2025, including SAAS Business Tower and Radiant Square.
Upcoming developments such as Masdar City Square, One Maryah Place, and Saadiyat Grove Business Park have reported strong pre-sales and investor interest, reflecting confidence from both multinational occupiers and institutional buyers.
The market remains underpinned by exceptionally low vacancy, just 8.3% citywide and 2% for Grade A assets, driving capital appreciation and rental yields.
Demand is concentrated in finance, energy, and innovation-led sectors within ADGM, Masdar City, and the ADNOC ecosystem, aligning with the emirate’s long-term diversification and sustainability goals.
With high-quality stock remaining scarce, enquiry levels for offices for sale in Abu Dhabi continue to grow, particularly within emerging business hubs such as Masdar City and Yas Island.
For further information contact:
Lucia Serban, Corporate Marketing Lead, Cushman & Wakefield Core lucia.serban@cushwake.ae
About Cushman & Wakefield Core
Cushman & Wakefield is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities, and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability, and more. Cushman & Wakefield Core is an independently owned and operated affiliate of Cushman & Wakefield, with over 17 years’ experience operating in the UAE. For additional information, visit www.cushwake.ae.