Dubai, September 23, 2025 – The UAE’s real estate sector has solidified its position as a key driver of economic growth, fueled by rising confidence from local and international investors, a flexible legislative framework, and a steady stream of new development projects. Reports indicate that the market is maintaining strong momentum in 2025, with robust sales, stable rentals, and growing interest from foreign investors across residential, commercial, and luxury property segments.
According to a recent report by JLL, off-plan properties dominated sales transactions in Dubai and Abu Dhabi during the first half of 2025, supported by new project launches and active secondary market sales. Dubai’s property sales reached AED153.7 billion in Q2, marking a 44.5% year-on-year increase, while average sales prices in Abu Dhabi rose 12.1% over the same period. Around 32,400 residential units are under construction across both emirates, reflecting sustained demand and the market’s capacity to meet growing housing needs.
The rental market also remained stable, with tenants favoring lease renewals. Abu Dhabi saw a 9.4% year-on-year increase in lease contracts during Q2, while Dubai recorded an 11.5% rise. Sales activity in Abu Dhabi grew by 9.1%, with secondary market transactions surging 32.6%, while Dubai experienced a 22.8% increase in total sales, supported by off-plan launches and a 17.1% rise in secondary market sales.
Office space expansion is underway, with Abu Dhabi adding 78,000 square metres in Q2 to reach 4.6 million square metres, and Dubai adding 24,000 square metres for a total of 9.3 million square metres. The Dubai International Financial Centre is expected to deliver 264,000 square metres of premium office space by 2026.
Projections by Statista estimate the UAE real estate market will reach US$693.53 billion by the end of 2025, with the residential segment contributing US$401.81 billion. The sector is expected to grow at an annual rate of 2.28% through 2029, reaching US$759.04 billion, as high-net-worth individuals continue to invest in luxury properties.
Meanwhile, Mordor Intelligence values the UAE real estate services market at US$18.45 billion in 2025, with growth to US$24.75 billion by 2030 at a CAGR of 6.05%, driven by foreign investment, logistics and data centre demand, and premium housing projects. Ras Al Khaimah is projected to record the highest growth rate, reflecting diverse opportunities across all emirates.
