The UAE’s real estate sector experienced strong growth in Q3 2025, supported by tight supply conditions, rising off-plan activity, and increasing demand across residential, hospitality and industrial markets, according to JLL. Strategic diversification and value-focused development continue to elevate long-term sector performance.
Key Highlights:
Overall Market Performance
- Tight supply and rising demand pushed prices and rents upward across all segments.
- Diversification, strategic adaptability, and value optimisation strengthened long-term market resilience.
- Strong macroeconomic fundamentals and population growth continued to support sector-wide expansion.
Residential Sector – Off-Plan Drives Momentum
- UAE residential market recorded record transactions, led by off-plan sales.
- Dubai achieved AED 139.7 billion in sales value during Q3.
- Abu Dhabi off-plan transactions grew 113%, with overall growth at 76.2%.
- Dubai saw 16.5% growth, with off-plan comprising 75.4% of all Q3 sales.
- Villa prices rose around 15% in both Dubai and Abu Dhabi.
- Apartment prices increased 7.8% in Abu Dhabi and 12.6% in Dubai.
- Upcoming supply: 12,000 units in Q4 2025, 47,200 units in 2026, 72,500 units in 2027—mostly apartments.
Rental Market Trends
- Dubai rentals showed steady performance with stable growth trends.
- Abu Dhabi rents increased across all property types:
- 15.6% for villas
- 14.8% for apartments
Hospitality Sector – Strategic Investment Shift
- Investors pivoted towards existing hospitality assets due to rising land costs and limited plots.
- Dubai welcomed 13.95 million visitors (Jan–Sept), up 5% YoY.
- Tourism strengthened by visitors from GCC, Western Europe, and South Asia.
- Secondary markets like Australasia and Americas saw double-digit growth.
- 2025 forecast: 19.44 million international overnight visitors (+5.2%).
- Limited new land supply supports strong occupancy and long-term pricing power.
Industrial & Logistics – Rapid Evolution
- Rising demand for specialised and flexible warehouse solutions.
- Growth of micro-fulfillment centres and temperature-controlled facilities.
- Smart logistics push from RTA and DP World enhances value through operational efficiency.
- Warehouse rents increased:
- 21.3% in Abu Dhabi
- 17.8% in Dubai
- High demand boosting rents in:
- Dubai Industrial City (24.3%)
- Dubai South (21.3%)
- Kezad – Al Mamoura in Abu Dhabi (24.7%)
- Free Zone demand exceeds supply, encouraging new pre-leased facility developments.
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