UAE property sales soar amid wave of new project launches

by Staff Reporter
Published: Updated:
Dubai real estate market

The UAE’s real estate market continued to grow in Q2 2025, driven by high demand, strong investor sentiment, and government-backed initiatives, according to Colliers’ latest market report.

Abu Dhabi real estate market

Abu Dhabi recorded its most robust performance since 2009, with developers launching new residential projects across key investment zones.

About 3,250 residential units were delivered in Q2, with an additional 2,150 expected before year-end. Major project announcements included Brabus Island by Reportage and Bulgari Resort and Mansions. In a further boost, Abu Dhabi’s National Housing approved 14 new projects, expected to add 26,000 homes over the next decade.

Rental rates in Abu Dhabi rose significantly. Average apartment rents increased 6% quarter-on-quarter and 13% year-on-year, with mid- and low-end units seeing up to 25% annual growth. Villa rents grew 3% from Q1 and up to 15% over the year.

Sales activity also climbed, with over 2,000 ready property transactions—a 46% rise from Q1. Off-plan sales rose 53% quarter-on-quarter. Apartment prices grew 8% from the previous quarter and over 25% annually, with top communities seeing over 35% growth.

Dubai property market

Dubai delivered around 12,500 residential units in Q2, including 3,900 villas—a 40% rise. Around 60,000 new units have been announced across more than 200 projects, marking what Colliers called “unprecedented” development activity.

Rental trends showed signs of maturity. Apartment rents rose 1%, while villa rents increased 2% compared to Q1. New lease volumes remained stable, with more tenants opting for homeownership, leading to fewer renewals.

The government’s newly launched First-Time Home Buyer Programme in July 2025 is expected to support this shift. The initiative offers up to 10% discounts and tailored mortgages for eligible UAE residents purchasing off-plan homes priced up to Dhs 5 million.

Sales prices rose 3% on average across both apartments and villas, with off-plan properties driving much of the growth. The office sector also gained momentum, with key announcements including Omniyat’s Lumena and Uptown Dubai Phase 2.

Northern Emirates and Al Ain trends

Around 8,000 new residential units were announced in the Northern Emirates during Q2. Rental rates grew steadily, with Ras Al Khaimah leading the way—up 5% quarterly. Sharjah and Ajman followed with 4% and 2% increases, respectively.

In the sales market, Ras Al Khaimah recorded a 4% quarterly and 18% annual rise in apartment prices. Sharjah’s prices rose 3% from Q1 and 11% year-on-year.

Al Ain maintained market stability, with apartment rents rising by up to 10% annually. Villas grew 4% year-on-year, supported by steady demand. The city also saw growth in office and retail segments, with new retail hubs expected in late 2025 and mid-2026.

tanvir@dubainewsweek.com

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