The UAE’s real estate sector has strengthened its role as a key driver of economic growth, buoyed by rising confidence from both local and global investors in the nation’s solid fundamentals and adaptable regulations, while steadily unveiling new projects that draw foreign investment across diverse property segments.

Global reports indicate that the UAE’s real estate sector continues its growth trajectory in 2025, fuelled by increasing foreign direct investment, the expansion of off-plan developments, stable rental markets, and government measures that foster innovation and boost the market’s attractiveness to investors.

A recent JLL report showed that off-plan properties accounted for the bulk of sales in Dubai and Abu Dhabi during the first half of the year, driven by new project launches and robust secondary market activity, Gulf Today reports.

This surge pushed transactions to record highs, with Dubai’s property sales hitting Dhs153.7 billion in the second quarter, a 44.5% increase from a year earlier, while average sales prices in Abu Dhabi climbed 12.1% over the same period.

The report highlighted ongoing growth in off-plan properties, supported by new project launches, with approximately 32,400 residential units under construction in Abu Dhabi and Dubai in the latter half of 2025.

Moreover, the findings noted that the rental markets in Abu Dhabi and Dubai remained stable, as tenants largely opted to renew their leases.

This drove a 9.4% year-on-year increase in lease contracts in Abu Dhabi during Q2, while Dubai saw an 11.5% rise in total residential leases.

In sales activity, Abu Dhabi saw a 9.1% rise in total transactions, driven by a 32.6% surge in the secondary market. Meanwhile, Dubai recorded a 22.8% year-on-year increase in total sales, supported by continued off-plan launches and a 17.1% growth in secondary market transactions.

Furthermore, according to a Statista report, the UAE real estate market is projected to reach $693.53 billion by the end of 2025, led by the residential sector at $401.81 billion.

The market is expected to grow at an annual rate of 2.28% through 2029, reaching $759.04 billion.

Strong demand from high-net-worth individuals for luxury properties continues to reinforce the UAE’s position as a top global investment destination.