UAE Real Estate Growth 2025: Dubai & Abu Dhabi Market Records

The United Arab Emirates (UAE) real estate market has continued to perform very well since the start of 2025. This strong performance is supported by the steady growth of both oil and non-oil sectors, as well as a significant increase in foreign investment coming into the country. The combination of these factors has led to remarkable growth across all areas of the property market, including residential, commercial, and industrial sectors.

Recent reports and global reviews confirm that the UAE’s economic momentum is sustainable and shows no signs of slowing down this year. Major real estate projects have been launched, property sales have reached record levels, and both occupancy rates and rental prices are rising steadily across multiple sectors.

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Property Transactions Show Strong Growth

Ismail Al Hammadi, Founder and CEO of Al Ruwad Real Estate, stated that property transactions across all emirates are showing notable growth and sustained activity. This indicates a strong real estate sector and high investor confidence. He pointed out that Dubai, in particular, is seeing remarkable growth in property transactions, showing its continued appeal to investors from around the world.

Some projects in Dubai, which are scheduled for completion in the next three years, are being sold out within just one or two weeks. This fast pace of sales is unusual and demonstrates how in-demand property is in the emirate.

Rising Demand in Abu Dhabi and Dubai

Saeed Abdulkareem Al Fahim, CEO of Stratum Owners Association Management Company, emphasized that both Abu Dhabi and Dubai are experiencing high demand for properties. Buyers are looking for a variety of properties, from luxury villas to mid-range apartments. The overall activity in the UAE property market is at a very high level, showing growth across all property types.

According to CBRE’s UAE Real Estate Market Review for Q2 2025, the real estate sector remains strong. This is supported by the country’s resilient economy, a positive growth outlook, increasing oil production, and higher foreign investment inflows.

Residential Market Remains Active

In both Dubai and Abu Dhabi, the residential property markets continue to be highly active. Off-plan launches, where buyers purchase properties before they are built, are very popular and backed by strong investor demand. Both cities are also seeing higher occupancy rates in office spaces, as companies continue to grow and expand. Meanwhile, the industrial sector is attracting international investors, especially in key logistics hubs, driving rental growth in warehouses and other industrial properties.

Dubai’s residential market, in particular, has continued its upward trend in July 2025. According to Betterhomes, using data from Property Monitor, there has been steady demand for both off-plan and secondary properties. Buyers are actively purchasing homes for both living and investment purposes.

Record-Breaking Property Sales

W Capital Real Estate, citing Dubai Land Department figures, reported record-breaking property sales worth AED100 billion from the beginning of 2025 until March 4. To put this in perspective, in 2024, this milestone was reached on March 22, and in 2023, it was reached on April 11.

Property sales in Dubai grew by 40% in the first half of 2025, reaching AED326.64 billion, compared to AED233 billion during the same period in 2024. This shows a strong increase in market activity and demonstrates that investors are confident in the UAE’s real estate sector.

Knight Frank, an independent real estate consultancy in Dubai, also highlighted Dubai’s record pace in surpassing AED100 billion in sales by early March. The growing momentum has pushed total home sales to historic levels, showing that Dubai continues to be a top choice for real estate investment.

Luxury Market Performance

Dubai has also maintained its position as the world’s busiest market for homes priced above US$10 million for the second year in a row. In 2024, the city recorded 435 sales in this luxury segment, which is nearly equal to the combined total of high-value sales in London and New York. This shows that Dubai remains a global hub for high-end real estate and continues to attract wealthy buyers from around the world.

Factors Driving Growth

Several factors are driving the growth of the UAE real estate market in 2025:

1. Economic Stability: The UAE’s economy has remained strong despite global challenges. Growth in both oil and non-oil sectors provides stability for property investment.

2. Foreign Investment: Increasing foreign investment inflows are boosting the property market, as international buyers see the UAE as a safe and profitable place to invest.

3. Infrastructure Development: The launch of new projects and ongoing development of residential, commercial, and industrial properties support long-term growth.

4. High Demand: Both local and international buyers continue to demand properties across all price ranges, from affordable homes to luxury villas.

5. Strong Rental Market: Rising occupancy rates and rental prices indicate that investors can earn good returns from rental properties.

Experts predict that the UAE real estate market will continue to grow through the rest of 2025. Dubai and Abu Dhabi, in particular, are expected to see further increases in property sales and rental values. The ongoing development of luxury projects, as well as mid-range and affordable housing, will continue to attract investors.

The strong growth of the real estate market also supports other sectors of the economy, including construction, finance, and services, creating jobs and boosting overall economic activity.

The UAE’s real estate market in 2025 shows remarkable strength and stability. Property transactions are rising across all emirates, luxury and mid-range properties are in high demand, and sales are reaching record levels. Dubai and Abu Dhabi continue to be the main drivers of growth, attracting investors from around the world.

With a resilient economy, increasing foreign investments, and ongoing infrastructure projects, the UAE property market is likely to remain strong, offering opportunities for both investors and residents.