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Middle East Eyes $3tn Real Estate and Infrastructure Pipeline as UAE Leads Growth: JLL
The Middle East and Africa (MEA) region is set for sustained high performance between 2026 and 2030, underpinned by a $3tn pipeline of real estate and infrastructure projects, according to JLL. The UAE is expected to be the primary growth engine, with projected project cash flows of $795bn over the period, including $470bn allocated to real estate development.
JLL noted that strong market fundamentals supported the MEA real estate sector in 2025, creating momentum for continued growth across asset classes from 2026 onwards. The past year saw record residential transaction volumes, double-digit rental growth in industrial and logistics assets, and extremely tight office vacancy levels of around 1 per cent. These trends were driven by professional talent migration, rising private investment and sustained infrastructure spending.
The UAE continues to reinforce this momentum, with committed real estate investments of $470bn through to 2030, including more than $300bn in Dubai alone. Looking ahead, demand is expected to increasingly favour high-quality assets, alongside greater asset optimisation, repurposing and the integration of AI-driven data centre developments.
Across the wider MEA region, low vacancy rates and strong absorption levels are easing supply constraints and supporting rental and capital value growth. Major infrastructure delivery is expected to further stimulate real estate development and attract higher levels of private sector participation.
JLL highlighted the growing importance of cross-border capital flows and alternative financing structures, particularly for greenfield developments where investment stock remains limited. Ongoing regulatory reforms and improved market transparency are also expected to enhance investor confidence across the region.
Findings from JLL’s MEA Occupier Survey 2026 indicate a continued preference for office-centric working cultures, with in-person collaboration remaining a priority. Most occupiers plan to expand their office footprints, particularly in the UAE, Saudi Arabia and Qatar, with a clear shift in focus from scale to quality, efficiency and sustainability.
UAE real estate sector
In the UAE, alignment between government economic strategies, strong growth fundamentals and robust occupier sentiment is driving demand for premium office space and reinforcing the ongoing flight to quality.
In Abu Dhabi, office supply is forecast to rise by just 7.9 per cent by 2028, with vacancy rates remaining exceptionally low at 0.1 per cent for Prime offices and 1.0 per cent for Grade A space. Dubai’s office supply growth is similarly constrained at 3.5 per cent, with much of the new stock already pre-leased. Prime and Grade A vacancy rates stand at 0.2 per cent and 3.4 per cent respectively.
City-wide vacancy of 7.1 per cent in Dubai is largely concentrated in Grade B and C buildings, highlighting opportunities for centrally located, Grade A and sustainably accredited offices.
The industrial and logistics sector continues to attract growing investment, supported by near-full occupancy and strong rental growth in Dubai, with spillover demand extending to Abu Dhabi and the Northern Emirates.
UAE industrial and infrastructure outlook
Major infrastructure projects, including the expansion of Al Maktoum International Airport, are enabling the development of new economic hubs. In Abu Dhabi, Khalifa Economic Zones Abu Dhabi (KEZAD) is building on its operational maturity to expand into new development clusters, supporting integrated industrial ecosystems and stable rental growth.
In Dubai, the announcement of the Metro Blue Line, with an estimated investment of $5bn, is expected to accelerate Transit-Oriented Development, creating new investment opportunities while enhancing connectivity, liveability and integrated community planning.
Dubai’s land market has undergone a significant transformation, with total transaction values increasing by 786 per cent to $121.4bn between 2019 and 2025. This growth has been supported by quality-driven migration, a $10.6bn infrastructure pipeline and regulatory reforms that have attracted global capital and improved market liquidity.
Panel discussions at the event also emphasised that asset retrofitting and repurposing are likely to accelerate as rising land values, higher construction costs and increasing demand for experiential and sustainable assets encourage owners to protect long-term asset value and returns.
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