Due to strong demand and a shortage of high-quality inventory, retail rents in Dubai and Abu Dhabi have increased by double digits in recent months.

CBRE Middle East reports that while rentals in Dubai increased 10.5% in the first quarter of the year, they increased 14.7% in the UAE capital.

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The real estate services company claims that multinational retail brands hoping to break into the local market—especially in Dubai—are partially responsible for the demand. The food and beverage business is another major consumer.

According to CBRE, “the supply-and-demand imbalance continues to drive rental performance in both Abu Dhabi and Dubai.”

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“Despite the restricted stock availability and high occupancy levels, we are witnessing a rise in the number of global and international retail brands seeking to launch or expand in Dubai’s core locations.”

High-quality properties are sought after by tenants in both emirates, especially those in desirable areas. CBRE noted that there isn’t enough stock available for the segment, though.

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According to Taimur Khan, Head of Research MENA in Dubai, “the strong levels of demand seen in the UAE’s retail market have resulted in a discernible lack of quality assets.”

“Even while rental growth is anticipated to continue, this will probably exert some pressure on new market activity, especially considering the dearth of forthcoming developments.”

CBRE stated that there were “robust levels of demand” in the industrial sector during the first quarter of the year.

In Abu Dhabi and Dubai, the average rent went up by 5.1% and 14.3%, respectively.

“Over the rest of the year, a number of new developments are scheduled for delivery; however, this is unlikely to exert downward pressure on rental rates,” said CBRE.