Dubai, UAE – July 2025
The UAE’s residential real estate sector is poised for steady growth over the next five years, with transaction volumes expected to rise at a compound annual growth rate (CAGR) of 2.66% through 2029, according to recent market forecasts.
This growth is driven by strong investor confidence, supportive government policies, and sustained demand for both off-plan and ready-to-move properties across the Emirates.
Key Drivers Behind the Growth
- Investor-Friendly Reforms: Initiatives such as golden visas, freehold ownership in prime zones, and expanded residency options have played a major role in attracting both local and international buyers.
- Off-Plan Project Momentum: Off-plan sales continue to dominate, supported by flexible payment plans and early-stage pricing benefits. This segment alone is expected to grow at over 10% annually through 2030.
- Robust Development Pipeline: Developers are launching an estimated 300,000 new residential units by 2029, with strong demand seen for mid-market apartments and luxury villas.
Market Value Outlook
The total value of the UAE’s residential property market is forecast to increase from USD 143.2 billion in 2025 to approximately USD 217.1 billion by 2030, reflecting an impressive CAGR of 8.66%.
Dubai Leads, but Other Emirates Are Catching Up
Dubai remains the market leader, accounting for nearly 45% of all residential transactions. In Q1 2025 alone, the city registered over 43,000 deals worth AED 115 billion, a 23% increase year-on-year.
However, other emirates such as Abu Dhabi and Ras Al Khaimah are quickly emerging as investment hotspots, thanks to new infrastructure developments and increasing foreign investor interest.
Trends to Watch
- Rising Mortgage Interest: While more mortgage options are available, higher EIBOR rates (over 5%) are influencing mid-income buyers’ decisions.
- Tech-Enabled Transactions: Digital property platforms, e-contracts, and fractional ownership models are making buying and selling more accessible and efficient.
- Demographic Growth: A growing expatriate population and business relocation trends continue to fuel long-term housing demand.
What This Means for Buyers and Investors
With a maturing market, high-quality inventory, and long-term economic confidence, the UAE offers a promising environment for real estate investment. Whether looking for off-plan opportunities or established communities, both end-users and investors are set to benefit from this upward trajectory.
