The UAE’s property sector is projected to reach $759 billion by 2029, propelled by a surge in Dubai’s second-quarter sales of AED153.7 billion, rising demand in Abu Dhabi, and strong interest in luxury and off-plan developments.
A Record-Breaking Trajectory for 2025
The UAE’s real estate market is poised for another exceptional year in 2025, solidifying its position as a crucial driver of national economic expansion.
The upward trend is supported by foreign direct investment (FDI), a robust pipeline of off-plan projects, steady rental activity, and proactive government-led initiatives. Both Dubai and Abu Dhabi registered double-digit sales growth, while global estimates suggest the market’s total value will approach $693 billion by the end of 2025.
Market Momentum Sustained by Investment and Policy
According to recent international assessments, the UAE property sector continues to maintain strong momentum in 2025. This growth is underpinned by sustained FDI inflows, the expansion of off-plan developments, and reforms that bolster the country’s appeal as a prime investment hub.
Performance of Key Hubs: Dubai and Abu Dhabi
A sector report revealed that off-plan units remained dominant across both Dubai and Abu Dhabi during the first half of the year.
- Dubai: Property sales reached AED153.7 billion ($41.9 billion) in Q2, a remarkable 44.5% year-on-year increase.
- Abu Dhabi: Average sales prices rose 12.1% over the same period.
The report highlighted approximately 32,400 residential units currently under construction across the two cities during the second half of 2025. This robust pipeline demonstrates the market’s resilience in addressing housing demands.
Steady Rental Market
Rental activity showed continued stability, with most tenants opting to renew existing contracts.
- Abu Dhabi experienced a 9.4% annual increase in lease agreements in Q2.
- Dubai recorded an 11.5% rise in total residential leases over the same period.
Sales transactions mirrored this positive trend:
- Abu Dhabi posted a 9.1% increase in total sales, including a 32.6% jump in the secondary market.
- Dubai saw a 22.8% rise in overall sales, alongside a 17.1% increase in secondary transactions.
Expansion of the Office Segment
The UAE’s commercial real estate segment also saw significant growth:
- Abu Dhabi expanded its office stock by 78,000 sq m in Q2, reaching 4.6 million sq m, with an additional 66,000 sq m expected by year-end.
- Dubai added 24,000 sq m, raising its total to 9.3 million sq m, while an estimated 264,000 sq m of premium office space at the Dubai International Financial Centre is slated for delivery by 2026.
Long-Term Forecast and Sector Outlook
According to Statista, the UAE real estate market is expected to reach $693.53 billion by the end of 2025, led by the residential segment at $401.81 billion. The sector is projected to grow at an annual rate of 2.28% through 2029, culminating at $759.04 billion.
High-net-worth individuals continue to fuel demand for luxury residences, cementing the UAE’s reputation as a premier global investment destination.
Meanwhile, Mordor Intelligence values the UAE real estate services market at $18.45 billion in 2025, with expansion to $24.75 billion by 2030, reflecting a 6.05% compound annual growth rate (CAGR).
Drivers of Growth Across Emirates
Sectoral growth is driven by foreign investment inflows, increasing logistics demand, and new developments such as data centres and premium housing projects.
The report also highlighted Ras Al Khaimah as an emerging hotspot with the highest projected growth rates, demonstrating the breadth of opportunities available across all seven emirates.
Source: https://www.arabianbusiness.com/gcc/uae/uae-real-estate-sector-759bn-2029-dubai-abu-dhabi-property-boom
