Momentum across all segments in 2025
The UAE’s property sector is powering ahead in 2025, supported by the strength of both oil and non-oil activity and a steady influx of international capital. Residential, office, retail, hospitality, and industrial assets are all benefiting from this upswing, setting the stage for continued momentum through the year.
What the market data shows
Industry updates point to a broad-based upswing: new project launches are accelerating, headline sales have reached record levels, and occupancy and rental rates are rising across multiple asset classes. Market leaders highlight Dubai as a standout performer, with some off-plan projects—scheduled for handover in three years—selling out in a matter of weeks. Demand is also firm in Abu Dhabi, spanning both luxury and mid-market homes.
Quarterly reviews for Q2 2025 underline why sentiment remains upbeat. Residential activity in Dubai and Abu Dhabi is elevated, with off-plan and secondary transactions both gaining. Office markets in the two cities continue to tighten on limited new supply, which is pushing rents higher. On the industrial side, prime logistics facilities remain in focus for regional and global investors, supporting further rental growth.
Monthly reads for July 2025 show sustained transaction volumes and steady demand in Dubai across sales and leasing, while year-to-date figures confirm the scale of the rally. Dubai crossed AED 100bn in property sales by early March—earlier than comparable milestones in the past two years—before advancing to a 40% year-on-year increase in total sales value in H1 2025. At the ultra-prime end, Dubai retained its position as the world’s busiest market for homes priced above $10m in 2024, logging hundreds of deals and cementing its status with global high-net-worth buyers.
A strategic push for ownership: First-Time Home Buyer Programme
To broaden access to ownership and balance a market long driven by investors, Dubai has launched a First-Time Home Buyer programme. Led by the Dubai Land Department and the Department of Economy and Tourism, and supported by leading developers and banks, the initiative gives eligible first-time purchasers priority access to new launches priced up to AED 5m, along with preferential pricing, tailored mortgage options, and flexible fee arrangements. Open to UAE nationals and residents, the programme aims to channel renter demand into end-user purchases and to encourage longer-term occupancy.
Balanced growth—and emerging headwinds
The growth outlook for 2025 has been revised higher amid stronger oil output, resilient non-oil activity, and rising foreign investment. Even so, geopolitical risks and global trade uncertainties remain potential headwinds. Early signs of moderation are visible in a handful of communities after several years of rapid price and rent inflation. Offices remain tight—and landlords are in a strong position—while tourism keeps lifting hotel performance nationwide. In retail, a shortage of quality mall space continues to support rent growth. Industrial demand, anchored by logistics, remains robust as the UAE consolidates its role as a regional hub.
Outlook
With diversified economic drivers, deepening capital inflows, and a policy push that nudges residents toward ownership, the UAE’s real estate story remains one of breadth and durability. The mix of high-velocity off-plan sales, tightening Grade-A offices, and logistics-led industrial demand suggests the cycle still has room to run—albeit with more measured price and rent growth as the market matures.
