The UAE’s real estate market continues to thrive despite global uncertainties, as highlighted in CBRE Middle East’s recent UAE Real Estate Market Review for the second quarter of 2025. The report notes a projected GDP growth of 5.1% for the UAE in 2025, up from 3.8% in 2024, primarily driven by a rebound in oil production, strong trade initiatives, and a booming tourism sector, which recorded a 7% increase in international visitors to Dubai from January to May 2025.
To promote homeownership and support its residents, Dubai has introduced a First-Time Home Buyer Program, featuring incentives such as preferential pricing and flexible payment plans. This initiative aims to stimulate end-user demand in the property market.
The office market in Dubai is experiencing strong demand, particularly from the Banking & Finance and Tech sectors, with rental prices increasing by over 20% year-on-year due to limited supply. Abu Dhabi’s office market mirrors this success, attracting international businesses and showcasing near-full occupancy rates.
The residential market in Dubai has also shown resilience, with property values climbing nearly 14% year-on-year as of June 2025. Transaction volumes surged by 23% in the first half of the year, driven by strong off-plan sales, contributing to a total value of residential sales reaching AED 270 billion. Meanwhile, Abu Dhabi is experiencing an 18% rise in apartment values and nearly 14% in villa prices, supported by the influx of high-net-worth individuals anticipated for 2025.
Moreover, the tourism sector is set to contribute AED 267.5 billion to the UAE’s GDP, bolstering the hospitality and retail markets. New entrants like Primark and venues linked to Dubai’s expanding social gaming scene highlight the continuing vibrancy in the retail sector.
The industrial market in the UAE is also on an upward trend, attracting investments and showcasing a promising outlook for manufacturing activities. Enhanced interest from global investors indicates a favorable future for logistics assets.
Matthew Green, Head of Research MENA, asserts that the UAE’s diverse economy and progressive policies will continue to drive growth across various real estate sectors through the year.
The report underscores a strong and optimistic outlook for the UAE’s real estate market, signaling that despite some geopolitical tensions, the fundamentals remain robust, and opportunities abound for both residents and investors.