Non-oil growth and investor confidence drive strong UAE property market performance
Saturday, 14 February 2026
The UAE real estate market closed 2025 on a strong note, supported by resilient non-oil economic growth, rising population, and sustained domestic and international investment, according to CBRE Middle East.
Key Highlights:
- UAE real estate showed robust performance across residential, commercial, hospitality, retail and industrial sectors in 2025.
- Market expansion was supported by strong non-oil economic activity and a positive business environment.
- Abu Dhabi recorded one of its strongest residential years, with transactions up 50% and values rising 61% year on year.
- Off-plan sales dominated Abu Dhabi’s residential market, driving nearly 32% annual price growth.
- Apartment values in Abu Dhabi rose close to 35%, while villas increased by nearly 14%.
- Dubai sustained steady momentum, with residential prices up 13% year on year and transaction volumes reaching record levels.
- More than 206,000 residential transactions were recorded across the UAE in 2025, up 18% annually.
- Office markets in Dubai and Abu Dhabi outperformed, with rental growth of 18% and 12% respectively and record-high occupancy levels.
- Retail assets remained stable, supported by tourism growth, rising consumer spending and high occupancy rates.
- The industrial and logistics sector continued rapid expansion, driven by non-oil exports, e-commerce growth and limited supply.
- Investor confidence remained strong, underpinned by economic diversification and long-term development strategies.