According to an industry estimate, the UAE’s real estate performance in 2025 would be driven by limited available supply, infrastructure development, and alternative assets such as last-mile logistics and data centres.
The ability to convert qualified non-freehold properties will drive demand across submarkets, while new infrastructure projects and alternative assets are expected to drive real estate development in the UAE this year, according to a report by JLL, a leading global commercial real estate and investment management firm.
UAE real estate performance
“Although the MEA region’s construction project market slowed in 2024, the UAE dominated construction project awards during the year, securing the largest share with 47 per cent, amounting to $34 billion,” according to JLL’s Middle East and Africa Market Review and Outlook 2025.
In terms of sectors, the UAE outperformed in residential and mixed-use projects, awarding $28.3 billion and $4.6 billion, respectively.
Taimur Khan, Head of Research MEA at JLL, stated that with inflation rates stabilizing and a strong labor market, the real estate sector is experiencing strong demand across key industries in both Dubai and Abu Dhabi.
“GDP growth has been amongst the strongest in the UAE as compared to other GCC countries, which is a testament to the government’s continued strategic efforts to attract investment,” he said.
Gary Tracey, Head of Project & Development Services UAE at JLL, stated that despite growing construction prices, the UAE’s real estate market is likely to maintain its upward trend in 2025, as indicated by healthy order books and good performance in the residential and mixed-use project sectors.
“This demonstrates the market’s resilience and underlying strength, but also underscores the need for diligent cost control and innovative solutions to ensure sustainable growth,” Tracey said.
Robust demand in Dubai
According to the research, Dubai’s residential sector finished 2024 on a high note, with sales transactions up 32% from the previous year, totaling AED367 billion.
Investor demand for off-plan properties remained high, accounting for the majority of deals valued at nearly AED223 billion, or 60.7% of the total.
Behind the strong demand, the developer launched around 157,000 units in 2024. Most of them cited Reizin’s data over the year, according to the report.
JLL, meanwhile, said the rental market has seen a decline in annual growth rates of 15.7%, indicating that shorter drugs could stabilize rents.