The UAE's real estate market posted a record-breaking performance in the first quarter of 2025.
Between January and March, the country saw 45,474 transactions totalling AED 142.7 billion, an increase of 22% in number and 30% in value compared to the same period last year. These figures mark an all-time high for Dubai's real estate sector.
The largest contributor to the record result was the completed residential segment in Dubai. It accounted for 20,034 transactions totalling AED 87.5 billion (up 21% in number and 34% in value year-on-year).
However, sales of under-construction properties remained the leader in terms of number of transactions, with 25,440 transactions worth AED 55.2 billion (up 24% year-on-year). This segment accounts for 56% of the total number of transactions in Dubai.
On the back of strong growth in Dubai, Abu Dhabi is seeing a shift towards high-end completed residential units.
In Q1 2025, there were 2,496 transactions valued at AED 9.6 billion. The number of completed properties sold increased by % and their value by 75%. Notably, residential transactions accounted for % of the total value and 88% of the total volume of the entire capital city market.
So the Dubai market continues to show resilience and the confidence of investors looking for long-term capital appreciation. And in Abu Dhabi, we are seeing a clear interest in quality, turnkey properties. Against the backdrop of global political changes and the devaluation of the dollar, there is growing international interest in UAE real estate as an investment asset. Rising rental prices in the UAE's key markets are increasingly pushing residents towards home ownership. It is predicted that the current trend from renting to owning could further strengthen the market in the second and third quarters of 2025.