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Published on 03/19/2025

UAE Real Estate Set for Strong 2025 as Dubai Records AED 367 Billion in Sales and Leads Regional Construction Projects

Record 157,000 Unit Launches; UAE Secures $34 Billion in Construction Awards, Dominating 47% of MEA Market

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.

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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.