In 2025, the UAE's real estate market will enter a new phase
of development spanning all seven emirates, rather than just Dubai. While Abu
Dhabi and Dubai continue to lead the way in terms of price increases, the other
emirates are rapidly transforming into new investment destinations, according
to a recent report by Bloom Holding, compiled using data from Property Finder
and the Dubai Land Department.
Record Real Estate Transactions in the UAE in 2025; Dubai
Takes the Lead
The UAE recorded AED 893 billion in real estate transactions
last year, with Dubai accounting for more than AED 760 billion of this total.
Real estate experts expect the UAE to witness significant growth in its real
estate market by 2025, benefiting both residential and luxury properties, as
well as development projects under construction. Dubai's real estate market
continues to grow as a major force behind this expansion.
Abu Dhabi Leads Price Rise in 2024
Abu Dhabi has cemented its position as a leader in the real
estate market with a massive 202% increase in property prices in 2024. Dubai
ranked second with a 124% increase in property prices. Property prices in
Dubai's Palm Jebel Ali and Meydan Avenue have risen by more than 200% over the
past five years, and Oak Villas Al Barsha and Westar Les Maisonettes in
Jumeirah Village Circle remain popular choices for luxury buyers. Since 2020,
properties for sale in Abu Dhabi in areas such as Remah in Al Ain and Zone 12
in Mohammed Bin Zayed City have seen their value increase by 230%, demonstrating
the city's continued attraction to investors.
Luxury Real Estate Boom: From Dubai and Abu Dhabi to Umm Al
Quwain
The UAE's luxury real estate market has expanded to overtake
Dubai as 2025 approaches. Abu Dhabi leads the market with 352 luxury properties,
followed by Dubai with 343. Umm Al Quwain, however, has surprised investors by
quickly attracting 302 luxury properties. Among the most sought-after
properties are Sidra 2 Villas in Dubai Hills Estate, as well as villas in
Muroor Road and Mushrif in Abu Dhabi, and Zenia in AKOYA Oxygen and the
Mughaidir suburb in Sharjah.
Smaller Emirates: Ras Al Khaimah and Sharjah Attract Global
Investors
The growth trend extends beyond Abu Dhabi and Dubai to other
regions. Ras Al Khaimah is a major investment hub following the establishment
of its thriving tourism sector and the development of major projects, including
the Wynn Resort on Al Marjan Island. Sharjah has attracted many investors
thanks to its open foreign ownership laws and environmentally friendly development
initiatives, particularly in Al Naseem Villas, which have seen prices rise by
243% over the past five years. Umm Al Quwain's real estate market offers an
ideal family lifestyle, with average property prices averaging $619 per square
meter and residents enjoying peace and tranquility.
The popularity of off-plan developments and the booming
rental market in Dubai
The UAE's real estate market continues to favor off-plan
developments, as buyers benefit from flexible installment plans and the
potential for lucrative returns. Dubai's thriving rental market is experiencing
significant growth as a large number of residents move to the area, while the
demand for smart homes is growing. Key locations where rental investors find
investment opportunities include Jumeirah Village Circle, Green Community, and
Dubai Investment Park.
2025 Predictions: New Opportunities Across the UAE
The UAE real estate market is looking very promising for
2025, driven by growing foreign investment, the arrival of wealthy individuals,
extensive infrastructure development, and smart, sustainable living trends. The
UAE's real estate investment landscape now spans from Dubai's iconic towers to
Abu Dhabi's waterfront areas, as well as the vibrant communities of Sharjah and
Ras Al Khaimah.
Conclusion
2025 represents a significant milestone for the UAE real
estate market. Dubai and Abu Dhabi remain the clear leaders, but significant
expansion in Ras Al Khaimah, Sharjah, and Umm Al Quwain foretells a more
diverse future for the market. Now is the perfect opportunity to invest or grow
your real estate portfolio in the UAE real estate sector, whether for
first-time buyers or seasoned investors.