The real estate sector in the UAE will reach a value of $759 billion by 2029 thanks to a boom in the real estate market in Dubai and Abu Dhabi.

The real estate sector in the UAE is heading for a record 2025, cementing its role as a key engine of economic growth.
Thanks to foreign direct investment, the start of project phase property sales, rent stability and government initiatives, Dubai and Abu Dhabi recorded double-digit sales growth, while global forecasts estimate the market value at close to $693 billion at the end of the year.

According to the latest international reports, the market maintains strong momentum in 2025, driven by foreign direct investment, expansion of pre-sale projects and government initiatives aimed at increasing the investment attractiveness of the sector.

Real estate in the United Arab Emirates: Dubai and Abu Dhabi performance

JLL's report revealed that pre-sale transactions in both Dubai and Abu Dhabi were dominated by pre-sale properties in the first half of the year.

Property sales in Dubai reached 153.7 billion in the second quarter. AED (41.9 billion) USD), representing a year-over-year increase of 44.5%. In Abu Dhabi, average selling prices increased by 12.1% over the same period.

The report highlights the continued strong position of real estate under construction, which is supported by approximately 32,400 housing units under construction in both cities in the second half of 2025.

Demand has remained stable, confirming the market's ability to meet housing needs.

Rental activity also stabilised, with tenants favouring contract extensions. Abu Dhabi recorded a 9.4% year-on-year increase in rental contracts in the second quarter, while Dubai recorded an 11.5% increase in the total number of residential leases.

Translated with DeepL.com (free version)

Sales transactions showed a similar trend:

Abu Dhabi recorded a 9.1% increase in total sales, including 32.6% growth in the secondary market.
Dubai saw a 22.8% increase in total sales and a 17.1% increase in secondary sales.
Office Space Market Expansion

Office space in Abu Dhabi increased by 78,000 m² in the second quarter to reach 4.6 million m², with an additional 66,000 m² expected by the end of the year.

Dubai added 24,000 m², bringing its total area to 9.3 million m², with 264,000 m² of premium space in the Dubai International Financial Centre scheduled to be delivered in 2026.

Statista predicts that the real estate market in the UAE will reach a value of 693.53 billion by the end of 2025. USD, with the residential segment with a value of 401.81 billion USD having the most significant share. USD.

The sector is expected to grow at an annual rate of 2.28% by 2029, reaching a value of 759.04 billion. USD.

Wealthy individuals continue to drive demand for luxury real estate, strengthening the UAE's position as a global investment destination.

Mordor Intelligence estimates that the real estate services market in the UAE will reach a value of 18.45 billion in 2025. USD and will grow to 24.75 billion by 2030. USD, representing an annual growth of 6.05%.

The growth is being driven by foreign investment, demand for logistics and new data centre and premium housing projects.

The report also highlighted that Ras Al Khaimah has the highest growth prospect in the coming years, underlining the diversity of opportunities across all emirates.

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Source: Arabic Business