Dubai’s real estate sector closed 2024 on a high, with residential sales jumping 32% year-on-year to AED 367 billion, driven by strong demand for off-plan properties, which made up 60.7% of total transactions (AED 223 billion). Developers launched a record 157,000 units in 2024, while rental rates rose 15.7%, suggesting stabilization ahead.

In early 2025, Dubai continued its momentum with over 28,800 property transactions by February. Jumeirah Village Circle (JVC) led demand, and apartment sales grew 14% month-on-month, while villas/townhouses increased 10%. Capital values rose 2% monthly for both.

Abu Dhabi’s office market also flourished, registering 47,615 rentals in 2024—a 30.8% rise—driven mainly by government demand. With limited new supply in 2025, rents are expected to climb, especially in prime areas.

The UAE led the Middle East construction sector in 2024, securing 47% of project awards worth $34 billion, primarily in residential and mixed-use developments. Despite rising construction costs, market resilience is strong, with tender price inflation forecast at 2.5% for 2025.

JLL attributes this performance to limited supply, infrastructure growth, and investor interest in alternative assets like data centres. The UAE’s robust non-oil GDP growth (4.7% in 2024, 4.8% forecast for 2025) and improving macroeconomic conditions are expected to sustain real estate growth into 2025.