UAE real estate sector shows strong momentum in 2025 with major projects

Abu Dhabi, UAE - September 1, 2025 - The UAE’s real estate sector has sustained its robust performance since the beginning of the year, supported by the resilience of both oil and non-oil sectors and a surge in foreign investment inflows. This momentum has driven strong growth across all market segments, from residential to commercial and industrial.

Economic Resilience Driving Growth

Global reviews and specialised reports highlight the sustainability of the UAE’s economic momentum throughout 2025, underscored by the launch of major real estate projects, record-breaking sales, and rising occupancy and rental rates across multiple sectors.

Ismail Al Hammadi, Founder and CEO of Al Ruwad Real Estate, stated: “Property transactions across all emirates demonstrate significant growth and sustained momentum, underscoring the strength of the sector and investor confidence.”

He added that Dubai’s transactions continue to grow remarkably, reflecting the emirate’s global investor appeal. “Some projects scheduled for delivery within three years sell out in just one or two weeks, something rarely seen anywhere else in the world,” he noted.

Saeed Abdulkareem Al Fahim, CEO of Stratum Owners Association Management, emphasised: “The UAE property market is witnessing remarkable activity and growth, especially in Abu Dhabi and Dubai, where demand continues to increase for a wide range of properties, from luxury units to mid-range housing.”

Market Performance Across Segments

According to CBRE’s UAE Real Estate Market Review Q2 2025, the sector remains strong, supported by the country’s resilient economy, improved growth outlook, a rebound in oil production, and rising foreign investment.

• Residential: Dubai and Abu Dhabi markets remain highly active, with strong off-plan launches supported by sustained investor demand.
• Commercial: Office markets in both cities are experiencing rising occupancy and strong rental growth.
• Industrial: International investors and developers continue to drive demand, boosting rental growth in key logistics assets.

Record-Breaking Sales in Dubai

Dubai’s residential market continued its upward trajectory in July 2025, according to Betterhomes, citing Property Monitor data and client insights. Transaction volumes and demand remained strong across off-plan and secondary markets.

W Capital Real Estate, citing Dubai Land Department figures, reported record-breaking property sales worth USD 27.2 billion (AED 100 billion) from the start of 2025 until March 4. By comparison, this milestone was reached on March 22 in 2024 and April 11 in 2023.

Dubai’s property sales surged 40% in H1 2025 to USD 88.9 billion (AED 326.64 billion) compared to USD 63.4 billion (AED 233 billion) during the same period in 2024.

Independent consultancy Knight Frank also highlighted Dubai’s record pace, noting that surpassing AED 100 billion in sales by March 4 marked a historic milestone in the emirate’s housing market.

Global Luxury Market Leader

Dubai has retained its position as the world’s busiest market for homes priced above USD 10 million for the second consecutive year in 2024. The emirate recorded 435 sales in this exclusive segment, nearly equivalent to the combined totals in both London and New York.