The latest Cushman & Wakefield EMEA Office Occupier Conditions report classifies Dubai and Abu Dhabi as landlord-favourable markets. They sit alongside a select group of European cities where prime availability is constrained and leasing terms are firming.
Across EMEA, only a limited number of markets currently meet that definition. In most cities, tenants still retain leverage. The UAE is not one of them.
Effective Supply Is Smaller Than Headline Availability
Citywide vacancy figures in Dubai and Abu Dhabi suggest choice. In practice, once occupiers filter for Grade A quality, ESG compliance, scale, parking ratios and long-term viability, available options narrow quickly.
This is consistent with the broader EMEA pattern. The Occupier Conditions data shows landlord-favourable dynamics emerging where development pipelines are contained and the share of modern, regulation-ready stock is limited. Effective supply tightens even when aggregate availability appears stable.
Dubai and Abu Dhabi reflect this clearly. Prime assets are near full occupancy. Incentives in leading towers are limited. In several submarkets, competitive tension is visible once larger contiguous space is sought.
Pressure Is Extending Beyond Prime
The important shift is not just strength at the top end. It is the spillover.
In the UAE, sustained flight to quality has absorbed much of the best Grade A inventory, with occupancy levels in this segment at 97% As prime options reduce, well-located Grade B buildings are experiencing firmer negotiations, particularly where they offer strong fundamentals: central positioning, efficient floorplates, or repositioning potential.
EMEA data shows a widening performance gap within cities. In tenant-favourable markets, secondary stock carries vacancy while prime holds steady. In landlord-favourable markets, pricing tension broadens. The UAE is exhibiting the latter dynamic.
Shell-and-core Grade B space remains slower-moving. However, landlords are responding through capital investment rather than discounting. Fitted space is being delivered to shorten leasing cycles and protect rental levels. Pricing discipline is being maintained through product improvement.
The impact of Flex
Flexible workspace is reinforcing, not weakening, landlord leverage.
High occupancy across major flex operators in Dubai and Abu Dhabi indicates sustained demand for short-term and managed solutions. Most operators are expanding footprints aggressively.
This limits fallback options for occupiers once quality thresholds are applied. Flex is no longer exerting downward pressure on rents. It is absorbing demand within the same constrained ecosystem.
A Structural Position, Not a Temporary One
Across EMEA, landlord-favourable conditions are the exception rather than the rule. The UAE sits within that minority group.
The drivers are clear:
- Limited prime development over the next two years
- Strong pre-commitment in upcoming projects
- Continued demand from financial services, professional sectors and regional headquarters
Landlords holding well-located, specification-compliant assets are negotiating from a position supported by fundamentals.
This is not uniform strength across all buildings. It is asset-level strength within a structurally tightening environment.
