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The UAE’s real estate sector continues to demonstrate robust performance in 2025, driven by the resilience of both oil and non-oil sectors alongside a surge in foreign investment inflows. Growth has been recorded across residential, commercial, and industrial property segments, positioning the market for sustained momentum throughout the year.
Latest reports from global real estate specialists confirm the sustainability of the UAE’s economic momentum in 2025, highlighted by the launch of major real estate projects, record-breaking sales figures, and rising occupancy and rental rates across multiple sectors, a WAM report said.
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Ismail Al Hammadi, Founder and CEO of Al Ruwad Real Estate, highlighted the strength of the market: “Property transactions across all emirates demonstrate significant growth and sustained momentum, underscoring the sector’s strength and investor confidence.”
Al Hammadi pointed to Dubai’s property market as a particular standout. “Dubai’s real estate transactions continue to show remarkable growth, reflecting the emirate’s global appeal to investors. Some projects scheduled for delivery within three years sell out in just one or two weeks, something rarely seen anywhere else in the world.”
Saeed Abdulkareem Al Fahim, CEO of Stratum Owners Association Management, echoed this optimism. “The UAE property market is witnessing remarkable activity and growth, especially in Abu Dhabi and Dubai. Demand continues to increase across a wide range of properties, from luxury units to mid-range housing.”
Market highlights from CBRE and industry reports
According to CBRE’s UAE Real Estate Market Review Q2 2025, the sector’s resilience is supported by the country’s robust economy, an improved growth outlook, a rebound in oil production, and rising foreign investment.
Residential markets in Dubai and Abu Dhabi remain highly active, with strong off-plan launches underpinned by sustained investor demand. Office markets in both cities are also experiencing rising occupancy and robust rental growth. Meanwhile, the industrial sector is attracting increasing international investor and developer interest, particularly in key logistics assets, driving rental growth.
Dubai’s residential market continued its upward trajectory into July 2025, as reported by Betterhomes, which cited data from Property Monitor and client insights. The market is seeing rising transaction volumes and steady demand across both off-plan and secondary sales and rentals.
Supporting these observations, W Capital Real Estate reported that property sales in Dubai reached an unprecedented Dhs100bn from January 1 to March 4, 2025. This milestone was reached earlier than in previous years, March 22 in 2024 and April 11 in 2023, signalling accelerating market activity.
Dubai’s property sales grew by 40 per cent in the first half of 2025, reaching Dhs326.64bn compared to Dhs233bn in the same period last year. Knight Frank, a leading independent real estate consultancy, noted the historic pace with which Dubai surpassed Dhs100bn in sales by early March, emphasizing the emirate’s rising momentum.
Adding to Dubai’s global stature, the city retained its position as the world’s busiest market for homes priced above $10m for the second consecutive year in 2024. The emirate recorded 435 sales in this ultra-luxury bracket, almost equal to the combined total sales in London and New York.
Strategic initiative: First-time home buyer programme
In a move aimed at broadening access to homeownership, Dubai recently launched the First-Time Home Buyer Programme, marking a strategic milestone for the city’s real estate evolution. This initiative complements other innovations such as tokenised real estate and reinforces the government’s commitment to building a sustainable property market.
Led by the Dubai Land Department (DLD) and the Department of Economy and Tourism (DET), the programme is backed by 13 major developers and five banks. It offers first-time buyers priority access to new property launches priced up to Dhs5m, according to CBRE’s market review.
Available to both UAE nationals and residents, the programme is designed to stimulate end-user demand and encourage long-term occupancy. It seeks to rebalance the market, which has seen an increasing share of off-plan buyers who are non-residents in recent years.
Key incentives include preferential pricing, tailored mortgage solutions, and flexible fee payment options. These aim to ease affordability pressures following five consecutive years of solid price gains.
While the full impact is yet to be realised, industry experts expect the programme to encourage more residents to transition from renting to owning. This shift could stimulate demand for home acquisitions and potentially soften current leasing market dynamics, which have contributed to rising living costs across the emirate.
Balanced growth amid emerging challenges
The UAE’s economy continues to show strong momentum, with growth forecasts for 2025 upgraded amid a rebound in oil production, robust non-oil sector performance, and rising foreign investment. However, geopolitical tensions and global trade uncertainties pose potential downside risks.
Residential markets in Dubai and Abu Dhabi remain highly active, with off-plan launches in Q2 2025 backed by sustained investor demand that continues to support price growth. That said, early signs of moderation in sales and rental values are emerging in certain communities, suggesting a potential softening after years of rapid increases.
Office markets in both cities maintain high occupancy and strong rental growth, driven by limited new supply and steady demand from finance, technology, and other key sectors.
Tourism, a vital pillar of the UAE economy, continues to show year-on-year growth in visitor numbers. This supports strong hotel performances nationwide, reinforcing the sector’s role in economic diversification and non-oil growth.
The retail sector, however, is grappling with a shortage of available space across prime malls, resulting in continued rental growth. The limited pipeline for new retail supply suggests a sustained landlord’s market for the foreseeable future.
Meanwhile, the industrial sector remains resilient, with rising interest from international investors and developers. Prime logistics assets continue to experience rental growth, buoyed by the expanding role of the UAE as a regional logistics hub.
