UAE real estate surges in 2025

Dubai hits record sales, while Abu Dhabi rents climb fast and the Northern Emirates gain fresh investor interest.

Dubai

Market performance

• Around 91,800 transactions in H1 2025 with a value of about AED 262.1 billion.

• Total sales already passed AED 525.87 billion before year end which is higher than the full year total for 2024.

• Price per square foot reached about AED 1,640 which represents about 13 percent annual growth.

Rental environment

• Rents increased around 8.5 percent year on year.

• Apartment yields average around 6.78 percent which is still attractive compared with other global hubs.

Supply and pipeline

• Around 61,800 units are under construction for delivery during the remainder of 2025.

• One bedroom apartments dominate both off plan and ready transactions which shows strong demand at entry points.

Luxury segment

• About 1,400 luxury transactions in H1 2025 with growth of around 62 percent compared with the previous period.

• Branded residences and waterfront districts remain the main beneficiaries.

Abu Dhabi

Market performance

• Market value around AED 94 billion driven by strong demand in Saadiyat, Yas, Raha and emerging investment zones.

• Abu Dhabi is seeing faster rental growth than Dubai which indicates tightening supply in key districts.

Rental environment

• Residential rents increased around 27.3 percent year on year.

• Apartment yields average around 6.97 percent which is slightly higher than Dubai.

Drivers

• Large scale masterplans, government backed cultural investments and high net worth population growth are driving premium demand.

• Yas Island, Saadiyat Island, Jubail and Raha Beach continue to show solid absorption.

Outlook

• Pricing in some locations may rise further through 2026 while others may stabilise depending on new stock releases.

• Strong infrastructure and lifestyle developments continue to attract end users who prefer Abu Dhabi for quality of living.

Northern Emirates (Sharjah, Ras Al Khaimah, Ajman, Fujairah)

Sharjah

• Continued demand for more affordable family communities.

• Supply additions are moderating which may put gentle upward pressure on rents in 2026.

• Popular with commuters who want more value compared with Dubai.

Ras Al Khaimah

• Tourism led projects continue to attract resort investors.

• New hospitality and branded residential schemes near Al Marjan Island are boosting interest from international buyers.

• Prices remain lower than Dubai which creates opportunity for long term capital appreciation.

Ajman and Fujairah

• Stable rental yields for mid market units.

• Strong appeal to first time buyers who want lower entry pricing.

• Infrastructure upgrades, ports and logistics growth support real estate demand.