Dubai’s real estate sector maintains strong momentum in 2025

Dubai's real estate sector maintains strong momentum in 2025

The durability of the oil and non-oil sectors as well as a spike in foreign investment inflows have helped the UAE’s real estate market maintain its strong performance since the year began. All areas of the real estate market, including residential, commercial, and industrial, have seen significant development as a result.

Recent international evaluations and specialized publications attest to the UAE’s economic momentum’s sustainability until 2025, as evidenced by the commencement of significant real estate projects, record sales, and rising occupancy and rental rates in various industries.

According to Ismail Al Hammadi, the founder and CEO of Al Ruwad Real Estate, real estate transactions in every emirate show notable expansion and steady momentum, highlighting the industry’s resilience and investor confidence.

He pointed out that Dubai’s real estate market, in particular, is still expanding remarkably, which reflects the emirate’s appeal to investors worldwide. He also mentioned that, which is uncommon in other parts of the world, some projects that are expected to be completed in three years sell out in as little as one or two weeks.

The CEO of the stratum owners association management company, Saeed Abdulkareem Al Fahim, emphasized that the UAE real estate market is undergoing incredible growth and activity, particularly in Abu Dhabi and Dubai, where there is a growing demand for a variety of properties, ranging from luxury apartments to mid-range homes.

CBRE’s UAE Real Estate Market Review for Q2 2025 states that the industry is still performing well, thanks to the nation’s robust economy, improved growth prospects, increased foreign investment, and a recovery in oil output.

The residential markets in Dubai and Abu Dhabi are still quite busy, with robust off-plan releases supported by ongoing investor demand. While the industrial sector continues to draw in foreign developers and investors, which fuels rental growth in important logistical assets, office markets in both cities are seeing significant rental growth and increased occupancy.

According to Betterhomes, which cited Property Monitor data and customer insights, Dubai’s residential market continued to grow in July 2025, with increasing transaction volumes and consistent demand for both sales and rentals across off-plan and secondary properties. From the beginning of 2025 until March 4, record-breaking real estate transactions totaling AED 100 billion were reported by W Capital Real Estate, citing data from the Dubai Land Department. In contrast, this milestone was accomplished on April 11 in 2023, and March 22 in 2024.

In the first half of 2025, Dubai’s property sales increased by 40% to AED326.64 billion, up from AED233 billion in the same period in 2024.

The emirate’s increasing momentum has driven overall home sales to a historic high, according to Knight Frank, an independent real estate consultancy in Dubai, which also highlighted Dubai’s record speed in breaking AED100 billion in sales by March 4.

With 435 sales in this exclusive price range in 2024—nearly equal to the combined sales in London and New York—Dubai has also maintained its status as the busiest market in the world for properties costing more than $10 million.

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