CBRE Middle East has released its latest edition of the UAE Real Estate Market Review for the second quarter of 2025, highlighting the resilient performance of the UAE’s real estate market.
It comes as the CBRE recently found that the second quarter of 2025 also witnessed a dynamic and evolving real estate landscape in Saudi Arabia.
The UAE’s economy continues to demonstrate robust growth, with GDP projected to grow 5.1% in 2025, up from 3.8% in 2024.
This positive trajectory is fueled by a rebound in oil production, strategic trade initiatives, and a thriving tourism sector, which saw a 7% year-on-year increase in international visitors to Dubai from January to May 2025.
Investment in advanced technologies is also bolstering growth. While rising regional geopolitical tensions present potential downside risks, the UAE’s market fundamentals remain strong.
In a move to further support its residents and to further grow the real estate market, Dubai has launched a First-Time Home Buyer Programme, offering incentives like preferential pricing and flexible payment options. This initiative aims to stimulate end-user demand and encourage homeownership.
Dubai’s residential market shows continued growth in Q2, with property values rising nearly 14% annually to June 2025. While the market is becoming more segmented, with some communities showing stabilisation, others, particularly premium areas, continue to experience significant appreciation, indicating market rebalancing.
Abu Dhabi also saw strong performance, with average apartment values up 18% year-on-year and villa prices up nearly 14%.
The first half of 2025 saw Dubai’s residential sector experience a strong surge in transactional activity. Total transaction volumes surged by 23% year-on-year, supported by strong off-plan sales.
The total value of residential sales reached AED 270bn. The UAE is poised to attract a record number of millionaire migrants in 2025, fueling demand, particularly in the luxury and off-plan sectors.
“The diverse nature of the UAE’s economy, coupled with its forward-thinking policies, remains a key driver of our real estate market. We anticipate continued growth across multiple sectors through the remainder of the year, as the country continues to attract an increasing number of high-net-worth individuals.”.
Matthew Green, Head of Research – MENA, CBRE
