UAE real estate is projected to reach $759bn by 2029, driven by Dubai’s AED153.7bn Q2 sales surge, Abu Dhabi growth, and strong demand for off-plan and luxury homes
The UAE real estate sector is on track for a record-breaking year in 2025, consolidating its role as a key engine of economic growth.
Buoyed by foreign direct investment, off-plan launches, rental stability and government initiatives, Dubai and Abu Dhabi posted double-digit sales growth while global forecasts put the market’s value at nearly $693bn by year-end.
According to the latest international reports, the market is maintaining strong momentum in 2025, fuelled by foreign direct investment, expansion of off-plan projects, and government initiatives to enhance the investment appeal of the sector.
UAE real estate: Dubai and Abu Dhabi performance
A report by JLL revealed that off-plan properties dominated sales transactions in both Dubai and Abu Dhabi in the first half of the year.
Dubai’s property sales reached AED153.7bn ($41.9bn) in the second quarter, up 44.5 per cent year-on-year. In Abu Dhabi, average sales prices rose 12.1 per cent over the same period.
The report noted continued strength in off-plan properties, backed by around 32,400 residential units under construction across both cities in the second half of 2025.
Demand remained resilient, confirming the market’s capacity to meet housing needs.
Rental activity also stabilised, with tenants favouring renewals. Abu Dhabi recorded a 9.4 per cent year-on-year rise in lease contracts in Q2, while Dubai saw an 11.5 per cent increase in total residential leases.
Sales transactions followed a similar pattern:
- Abu Dhabi posted a 9.1 per cent increase in total sales, including 32.6 per cent growth in the secondary market
- Dubai recorded a 22.8 per cent rise in total sales and a 17.1 per cent increase in secondary sales
Office market expansion
Abu Dhabi’s office stock increased by 78,000sq m in the second quarter to reach 4.6million square metres, with another 66,000sq m expected by year-end.
Dubai added 24,000sq m, bringing its total to 9.3 million square metres, with 264,000sq m of premium space in Dubai International Financial Centre scheduled for delivery in 2026.
Statista projects the UAE real estate market will reach $693.53bn by the end of 2025, led by the residential segment at $401.81bn.
The sector is forecast to expand at an annual growth rate of 2.28 per cent through 2029, reaching $759.04bn.
High-net-worth individuals continue to drive demand for luxury properties, reinforcing the UAE’s position as a global investment destination.
Mordor Intelligence estimated the UAE real estate services market at $18.45bn in 2025, with expansion to $24.75bn by 2030 at a compound annual growth rate of 6.05 per cent.
Growth is being driven by foreign investment, logistics demand, and new data centre and premium housing projects.
The report also highlighted Ras Al Khaimah as poised for the highest growth rates in the coming years, underscoring the diversity of opportunities across all emirates.
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