The UAE real estate market remained resilient in the first quarter of 2026, holding its ground even as geopolitical tensions and a softer economic backdrop weighed on sentiment across the region.
A new report from CBRE highlights that while the UAE’s GDP growth outlook has been revised down to 0.3 percent, the broader economy remains supported by strong liquidity, contained inflation, and proactive policy measures.
Across asset classes, the story is less about slowdown and more about adjustment.
Office markets in both Dubai and Abu Dhabi remained tight, with limited new supply continuing to push rents higher. Occupancy levels stayed elevated, particularly in prime locations, as businesses continued to prioritize quality space despite some delays in expansion plans.
The residential segment, however, showed signs of divergence. Dubai’s market began to moderate after a strong multi-year run, with both rental and price growth easing, even though transaction volumes remained relatively high. In contrast, Abu Dhabi saw a surge in activity, driven by demand for premium developments and a sharp rise in transaction values.
Hospitality continued to be one of the strongest performers. The sector carried forward momentum from a record 2025, with high occupancy levels and strong visitor numbers in early 2026, even as operators began adjusting to shifting travel patterns later in the quarter.
Retail and logistics also held steady. Prime retail assets maintained high occupancy despite changing consumer behavior, while the industrial segment continued to benefit from strong demand and constrained supply.
What ties these segments together is the market’s ability to absorb shocks without losing its underlying strength.
“Recent geopolitical developments have undeniably influenced sentiment and short-term activity, but the UAE real estate market has showcased its inherent stability,” said Matthew Green, Head of Research at CBRE MENA.
He pointed to structural undersupply across key segments, strong institutional frameworks, and the UAE’s continued appeal as a global capital destination as factors supporting the market’s resilience.
The first quarter, in that sense, reflects a market that is recalibrating rather than weakening. While external pressures are clearly visible, the fundamentals remain intact, positioning the UAE real estate sector to navigate the rest of the year with relative stability.
