Chestertons MENA, one of the world’s most established real estate advisories, has released new data confirming a sharp rise in commercial real estate activity across the UAE. The firm’s Q1 2025 Market Report shows a 50.4% year-on-year increase in commercial leasing, alongside double-digit growth in villa and townhouse transactions — underscoring the powerful convergence of market demand, investor confidence, and regulatory readiness.
Office leasing led the commercial sector, recording over 101,000 transactions — a 62.7% increase compared to Q1 2024 — while retail leasing saw 36,000 transactions, amounting to AED 3.4 billion. Land leasing also posted steady gains. The data points to robust corporate expansion, growing business formation, and sustained appetite for commercial space across key UAE zones.
“Commercial real estate is no longer a peripheral category — it’s at the centre of the UAE’s next economic chapter,” said Mohamed Mussa, Executive Director of Chestertons. “What we’re seeing is not a temporary rebound but a redefinition of the region’s investment profile. From the performance of off-plan markets in Ras Al Khaimah to the legal reforms enabling long-term ownership, this is an ecosystem ready for scale.”
These trends were unpacked during Chestertons’ Commercial Conference held in May 2025, which brought together senior leaders across valuation, advisory, and legal practice. The panel included:
- Andrew Elliott, Director of Commercial Agency
- Benjamin Cullum, Head of Valuations and Advisory
- Conor Henry, Director of Valuations and Advisory
- Jake Wright, Director of Investment and Advisory
- Michael Kortbawi, Corporate & Finance Law Expert (BSA Ahmad Bin Hezeem & Associates LLP)
The conference highlighted key structural enablers:
- 100% foreign ownership across most mainland sectors
- A newly introduced 9% federal corporate tax, with 0% options for qualifying free zone income structures
- Expansion of investor-friendly zones such as RAKEZ, which is set to overtake JAFZA in activity
- Long-term renewable lease models, digital incorporation platforms, and streamlined dispute resolution through RERA, DIFC, and specialized courts
- Increasing demand for REITs, sale-and-leaseback structures, and institutional-grade commercial assets amid Grade A supply constraints
“Recent legal reforms have shifted the UAE from being merely attractive to being strategically compelling,” said Lawyer: Michael Kortbawi, Corporate & Finance Law Expert and panelist at the Chestertons Commercial Conference. “Investors now have clarity on ownership, tax, and dispute resolution, along with access to digital tools and long-term visas. This is a legal framework built for global capital and long-term business planning.”
Residential demand also remained strong. Townhouse and villa transactions rose 51.93% in volume year-on-year, reaching a total value of AED 76.5 billion, while apartment sales climbed 16.25% in value to AED 75.1 billion. Buyer appetite was concentrated in communities such as JVC, Business Bay, and Dubai Marina, driven by location, lifestyle, and long-term rental yield potential.
Rental activity reflected similar growth. Apartment leasing was up 21.4% year-on-year, totaling AED 11.3 billion across 151,000 rental transactions, while villa and townhouse leasing rose 21% in value to AED 3.4 billion. The report attributes these trends to population growth, long-term residency programs, and a shift toward larger living spaces post-COVID.
“Across every segment — commercial, residential, leasing, and investment — the UAE is showing clear signs of structured, sustainable growth,” added Mania Merrikhi, Chief Operating Officer and Managing Director at Chestertons MENA. “The legal infrastructure, investor protections, and macroeconomic vision are all working in tandem to create one of the world’s most investible property markets.”
Chestertons — established in London in 1805 and active in the UAE since 2008 — has built a deep regional presence from its headquarters in Dubai Marina. The firm’s team of over 165 professionals offers services across brokerage, valuation, building consultancy, asset management, and market research, property management and investment advisory. In Q1 2025 alone, Chestertons reported a 155% year-on-year increase in MENA transactions, and is now targeting 220% regional growth by 2026.
