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.
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