The UAE’s real estate sector continues to be a key driver of economic growth, supported by increased foreign investment, a stable rental market, and ongoing development projects across the country.
Strong sales and new projects
Reports show that off-plan properties led sales in Dubai and Abu Dhabi during the first half of 2025. Dubai’s property sales reached Dhs 153.7 billion in the second quarter, up 44.5 percent year-on-year. Meanwhile, average sales prices in Abu Dhabi rose by 12.1 percent in the same period. Around 32,400 residential units are under construction in the two emirates for the latter half of the year, reflecting continued demand.
Stable rental market
The rental market remained steady, with many tenants renewing contracts. Abu Dhabi saw a 9.4 percent increase in lease contracts in the second quarter, while Dubai recorded an 11.5 percent rise in residential leases.
Abu Dhabi reported a 9.1 percent increase in total sales transactions, including a 32.6 percent rise in the secondary market. Dubai’s total sales grew by 22.8 percent annually, driven by off-plan projects and a 17.1 percent increase in secondary sales.
Office space expansion
Office space in Abu Dhabi grew by 78,000 square metres in Q2, totaling 4.6 million square metres, with 66,000 more expected by year-end. Dubai added 24,000 square metres, bringing its total to 9.3 million square metres. Premium office developments are planned, including 264,000 square metres at Dubai International Financial Centre by 2026.
A Statista report projects the UAE real estate market will reach US$693.53 billion by the end of 2025, with the residential sector leading at US$401.81 billion. The market is expected to grow at 2.28 percent annually until 2029.
Mordor Intelligence forecasts the UAE real estate services market at US$18.45 billion in 2025, rising to US$24.75 billion by 2030. Growth is driven by foreign investment, demand for logistics assets, and premium housing projects.
Ras Al Khaimah is expected to see the highest real estate growth rate among the emirates, indicating broader investment opportunities across the UAE.
tanvir@dubainewsweek.com
