Surging Population Drives Exceptional Growth in UAE Property Market for 2025
Tuesday, 9 December 2025
The UAE real estate market is closing 2025 with exceptional performance driven by strong population growth, high investor confidence, and solid economic fundamentals. As 2026 begins, the market transitions into a more balanced and sustainable growth phase supported by rising supply, stable demand, and maturing market cycles.
Key Highlights:
- Record-breaking 2025 performance, supported by population growth, wealth inflows, and strong economic fundamentals.
- Balanced market outlook for 2026, with rising supply and steady demand leading to greater predictability.
- GDP growth of 4.9% in 2025, powered by tourism, non-oil expansion, and foreign investment.
- Population growth accelerates housing demand, with Dubai adding nearly 1,000 residents daily.
- Wealth migration continues, with almost 10,000 millionaires relocating to the UAE in 2025.
- Dubai residential transactions hit new highs, with off-plan accounting for over 70% of activity.
- Price growth of around 16%, led by waterfront and branded developments.
- Upcoming supply pipeline of 150,000–250,000 units between 2025 and 2027 supports market balance.
- Rental growth moderates to 8–12%, signalling a healthy phase of stabilisation.
- Office sector remains strong, with Grade A occupancy near 94% and rents rising almost 29% annually.
- Abu Dhabi achieves record-breaking year, with 76% annual growth in transactions and strong off-plan demand.
- Northern Emirates gain momentum, driven by relocations, tourism, and new development zones.
- Luxury market thrives, with strong global demand and limited supply supporting premium segments.
- 2026 outlook remains robust, marked by maturity, stability, and long-term confidence across all emirates.
