Market Reports

Abu Dhabi's residential market delivered a record-breaking start to 2026, despite a more challenging macroeconomic backdrop. Approximately 8,100 residential sales transactions were recorded in Q1 2026, representing a 123.6% increase compared to the same period last year, with total sales value reaching AED 38.1 billion, the highest quarterly figure on record and a 211.5% increase year-on-year. Market activity continued to be dominated by the off-plan segment, which accounted for over four-fifths of all residential transactions and nearly 90% of total sales value, supported by new project launches and strong interest from both domestic and international buyers.

Dubai’s residential real estate market recorded approximately 44,200 sales transactions valued at AED 139.1 billion in Q1 2026, up 4.6% and 21.5% year-on-year respectively. The off-plan segment continued to dominate, accounting for 73% of all transactions, supported by flexible payment plans, developer incentives, and sustained investor participation, with transaction values reaching AED 105.5 billion, up 34.6% year-on-year, notably outpacing volume growth and pointing to a meaningful rise in average transaction values. The ready segment, by contrast, recorded 12,000 transactions valued at AED 33.6 billion, declining 8.7% and 7.0% year-on-year respectively, with March bearing pressure as Ramadan seasonality and geopolitical uncertainty converged.

Ras Al Khaimah’s macroeconomic environment remained strong in 2025, with Gross Domestic Product (GDP) estimated to have grown by 4.3% according to S&P Global, supported by a diversified economic base. Economic indicators also reflected sustained momentum, particularly in business formation, with new business licence issuance rising by 31.5% to 1,789 licences and total active economic licences increasing to 21,938 by year-end. In parallel, Ras Al Khaimah Economic Zone (RAKEZ) continued to play a central role in economic diversification, recording a 44% increase in new company registrations and expanding its business community to over 40,000 entities.

Dubai’s office market recorded a strong start to 2026, supported by continued business formation and sustained investor interest. Despite regional tensions escalating in March, business inflows remained resilient, with the Dubai Chamber of Commerce registering 2,709 new member companies during the month alone. This momentum was reflected in DIFC, which attracted 775 new companies across the quarter, with March emerging as its strongest month at 258 new registrations, up 59% year-on-year, further reinforcing Dubai’s standing as the region’s preferred business destination.

Dubai's office market delivered exceptional performance in 2025, characterised by surging prices, record transaction volumes, and robust rental growth, all supported by strong economic fundamentals and persistent supply constraints. The Emirate's business ecosystem expanded significantly, with the Dubai Chamber of Commerce registering 71,830 new member companies, pushing total active membership to 292,486, a 13.2% increase year-on-year.

Dubai's office market delivered a strong performance in Q3 2025, supported by robust economic fundamentals and ongoing business formation activities. Dubai Chamber of Commerce welcomed approximately 53,000 new member companies in the first nine months of 2025, up 4% year-on-year, and attracted 261 foreign companies, a 65.2% increase over the same period in 2024. This surge in business activity fuelled heightened demand for office space, with sales transactions reaching approximately 1,200, up 39.9% year-on-year, and transaction values climbing to AED 3.1 billion, reflecting 87.6% annual growth. The off-plan segment was the primary driver, with volumes rising 463.8% year-on-year.

Saudi Arabia's hospitality sector is likely to remain relatively resilient over the remainder of 2026, supported by strong domestic tourism activity and the continued importance of religious travel. However, softer inbound demand due ongoing geopolitical uncertainty are expected to create varying market conditions across destinations in the near term. Inbound tourism activity moderated during the first quarter of 2026, with international visitor arrivals declining by 13% year-on-year to 8.3 million visitors and inbound tourism expenditure decreasing by 7% to SAR 48 billion. Despite the slowdown, international visitors remained the largest contributor to tourism spending, accounting for approximately 58% of total tourism expenditure. The decline was partly driven by heightened geopolitical tensions across the Middle East, which disrupted regional travel patterns, prompted flight suspensions by several international carriers, and contributed to greater caution amongst international travellers. Stronger domestic tourism activity, however, helped cushion the impact, with visitor volumes and expenditure continuing to grow through the quarter.

Oman’s hospitality sector delivered a strong performance in 2025, supported by continued growth in tourism demand and improving connectivity. Airport traffic reached 14.9 million passengers, up 2.8% year-on-year, reflecting steady recovery momentum and enhanced route networks. This translated into solid hotel performance, with the 3–5-star segment welcoming approximately 2.4 million guests, a 10.8% increase compared to 2024, supported by both domestic and international segments, contributing to greater demand diversification.

Dubai's tourism sector has grown steadily over the past few years, benefiting from world-class infrastructure, a safe and diversified environment, and a strong calendar of events and cultural festivals. The market continued to perform strongly in 2025, supported by strong air connectivity, rising international visitation, and resilient hotel performance. Passenger traffic at Dubai's airports reached 95.2 million up by 3.1% compared to 2024, with international visitors climbing to 19.6 million, reinforcing the city's position as a leading hub for both leisure and business travel. Demand growth remains broad-based, supported by a diversified mix of source markets and an expanding ecosystem of events and experiences, while premium hotel openings have further enhanced Dubai's appeal to high-value international travellers.

Dubai's retail and warehouse sectors entered 2026 with positive market fundamentals, supported by population growth, economic expansion and resilient occupier demand. While activity in Q1 was influenced by the timing of Ramadan and heightened regional uncertainty, overall market performance remained stable, with both sectors demonstrating underlying resilience despite a moderation in transactional activity. Retail performance was characterised by strong growth in sales activity, with transaction volumes rising 51.6% year-on-year and values increasing 171% to AED 2.1 billion, supported by higher-value transactions and price appreciation. However, leasing activity softened, with total contracts declining 7.2% year-on-year, reflecting an ongoing preference for renewals over new leasing. Despite this, retail rental rates increased 6.4% year-on-year, with performance increasingly differentiated by location, as community- led retail assets remained resilient while tourism-linked destinations faced a more uncertain environment.

Dubai's retail and warehouse sectors demonstrated resilience and growth in 2025, supported by strong fundamentals including record tourism, population growth, and rising e-commerce activity. Both sectors, however, faced tightening supply conditions that shaped market dynamics throughout the year. The retail sector experienced robust growth in 2025, with sales transaction values rising 48.4% year-on-year to AED 4.6 billion, significantly outpacing the 7.6% increase in transaction volumes. Rental activity showed signs of supply constraint, with new leases declining 15.7% whilst renewals strengthened by 6.5%, as tenants prioritised retaining space in prime locations amid limited availability, pushing rental rates 7.1% higher year-on-year.

Dubai’s retail and warehouse markets delivered a strong performance in Q3 2025, supported by resilient demand, constrained supply, and improving investor confidence. Retail sales activity accelerated sharply during the quarter, with transaction volumes rising quarter on quarter and total deal value surpassing the AED 1 billion mark for the first time in a single quarter, driven primarily by robust off-plan activity.