More indicators of strong demand for Dubai’s office sector…: Dubai saw some 2k sales transactions in 1H 2025, up 84% y-o-y to AED 5.4 bn, according to a Cavendish Maxwell report. Commercial real estate prices were up by an average of 22.2% y-o-y to AED 1.7k per sq ft, while rents grew 26.4% y-o-y, with prime areas such as DIFC and Downtown Dubai seeing a nearly 35% jump.

Ready offices made up nearly 85% of transactions in 1H, but off-plan sales saw a significant surge amid high investor demand, with the value of off-plan sales rising 617.4%, and the volume rising c.180% y-o-y, driven largely by demand for luxury-grade office space.

Business Bay remained the top area for sales with 672 transactions, followed by Jumeirah Lakes Towers with 534, and Motor City with 216. Some 4k sqm of new commercial space were delivered in 1H 2025, with an additional 110k sqm expected in 2H and 340k sqm in 2026.

…and in Abu Dhabi: Off-plan weighted average prices on Al Reem Island jumped 38% y-o-y in 2Q 2025, with average prices in waterfront projects reaching AED 1.8k per square foot, the fastest in the capital, according to a press release citing Quanta data analyzed by real estate developer Mered. Rental indices show apartment rents on Al Reem up 21% y-o-y, as demand for the location grew in recent months following the ADGM’s expansion to the island. Khalifa City and Jubail Island followed with 24% and 20% growth.

REMEMBER- Abu Dhabi office demand surged in 1H 2025, with more than 50k sqm required during the period, up 110% y-o-y. Grade A occupancy is near full, while January transactions spiked on new rental contracts.

The rally is reflected in the performance of the UAE’s listed REITs. Emirates NBD REIT — whose portfolio is made up of 70% office assets — is up 54.2% YTD, and Al Mal Capital REIT is up 48.7% YTD. The first listed REIT in the UAE, Emirates REIT, is the only outlier, trading down 5.6% YTD at USD 0.50 apiece at Friday’s close.

REMEMBER- AMCREIT moved to tap the market with a follow-on public offering last week, buoyed by Dubai’s strong real estate performance which has been fueling investor appetite for income-generating assets. The issuance raised AED 210 mn at a price of AED 1.125 per unit. The REIT also saw its net income grow to AED 1.9 bn in 1H 2025, more than triple last year’s AED 565.3 mn, while revenues grew 9.8% y-o-y to AED 957.8 mn.

They’ve all been netting strong gains: Emirates REIT, meanwhile, saw its net income for 1Q 2025 rise 6x y-o-y to USD 149.7 mn on stronger portfolio valuations. ENBD REIT saw its net income surge 61% y-o-y to USD 33.7 mn in its FY 2024-2025 ending March, and Dubai Residential REIT also tripled its net income on a fair value gain.

What makes REITs attractive to investors in the local market? UAE REITs must distribute at least 80% of their annual net profits to unitholders, offering the potential for a steady, sustainable income stream. They also enjoy tax advantages: the REIT itself is exempt from corporate tax, and UAE-based individual investors pay no tax on their earnings.

High demand and tight supply point to more future momentum for REITs: Knight Frank cited robust demand, which is set to outpace supply this year, and high-value transactions in prime districts, as drivers for the market in the near future, indicating favorable conditions for income-generating assets like those in the REITs’ portfolios.

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