The UAE has unveiled a series of initiatives to strengthen its property sector and attract investment, building on an already robust market performance.
Dubai Land Department launched a smart rental index featuring a 1-to-5-star rating system for residential buildings. Evaluated across 60 criteria—such as location, sustainability, and amenities—this initiative enhances market transparency, aiding tenants and landlords in decision-making.
Sheikh Zayed Road and Al Jaddaf private property owners can now convert their properties to freehold status. This move impacts 457 plots—128 on Sheikh Zayed Road and 329 in Al Jaddaf—boosting Dubai’s appeal as a prime real estate hub. The transformation is expected to rejuvenate Sheikh Zayed Road with redevelopment and new projects.
The UAE Central Bank has instructed banks to stop financing Dubai Land Department registration fees and real estate broker fees starting February 1. While this increases upfront costs for buyers, it aims to mitigate risks for lenders and ensure market stability.
Abu Dhabi introduced its first residential rental index, providing transparent rental values for tenants and landlords.
Dubai’s real estate market hit AED 761 billion in transactions in 2024, a 20% increase from 2023, with 226,000 transactions—up by 36%. Average prices surged by 19% for apartments and 23% for villas.
The newly announced high-speed passenger rail service between Abu Dhabi and Dubai will cut travel time to 30 minutes, facilitating movement as real estate projects rise across the UAE.
Industry experts see these initiatives as steps toward sustainable growth. While the freehold status expansion creates new investment opportunities, the smart rental index and increased transparency are expected to attract investors. However, higher upfront costs could challenge smaller buyers.
With these policies, the UAE continues to position itself as a global real estate leader, blending innovation and investment opportunities.