UAE Real Estate Nears $700B Milestone As Services Arm Surges

The UAE's real estate market is on course to approach a landmark valuation of nearly $700 billion in 2025, underscoring its role as a cornerstone of the nation's economic growth.

According to Statista, the sector is projected to reach $693.53 billion by the end of the year, driven by sustained foreign investor appetite, expanding off-plan sales, and a robust pipeline of development projects.

This sheer scale not only underscores the UAE's status as one of the world's most dynamic property markets but also highlights the growing sophistication of its supporting real estate services industry, which Mordor Intelligence estimates at $18.45 billion this year, set to expand steadily toward 2030.

The sector's momentum is evident in transaction volumes and pricing trends across both Dubai and Abu Dhabi.

JLL reported that off-plan sales dominated in the first half of the year, with new launches and secondary market activity spurring record levels of deals. Dubai's property sales alone touched Dh153.7 billion in the second quarter, marking a 44.5 per cent year-on-year surge, while average sales prices in Abu Dhabi climbed 12.1 per cent in the same period. With around 32,400 residential units under construction in the two emirates during the latter half of 2025, the pipeline is set to meet rising demand while confirming developers' confidence in long-term market fundamentals.

Rental activity has also reflected resilience. In Abu Dhabi, lease contracts rose 9.4 per cent year-on-year in Q2, while Dubai registered an 11.5 per cent increase in residential leases. Investors and end-users alike are showing a preference for stability, with many tenants opting to renew contracts rather than relocate, providing steady cash flows for landlords and reinforcing market balance.

Sales performance remains robust across both emirates. Abu Dhabi posted a 9.1 per cent increase in total sales transactions, with a sharp 32.6 per cent rise in the secondary market. Dubai outpaced this with 22.8 per cent annual growth in overall sales, including a 17.1 per cent uptick in secondary sales. These figures reflect a healthy mix of demand for both new and established properties, underlining the market's broad-based strength.

The commercial segment is also on an upward trajectory, mirroring growth in the broader economy. Abu Dhabi expanded its office stock by 78,000 square metres in Q2, bringing the total to 4.6 million square metres, with a further 66,000 square metres due by year-end. Dubai added 24,000 square metres to its stock, reaching 9.3 million square metres, with 2026 expected to deliver a major addition of 264,000 square metres of premium office space at Dubai International Financial Centre. Such expansion illustrates the UAE's ability to support business growth and attract multinational tenants seeking high-quality office environments.

The Statista projection of a $693.53 billion market valuation by year-end highlights not only the strength of the current cycle but also the resilience built into the UAE's regulatory and economic framework. The country's liberalised property ownership rules, long-term residency visas, and investor-friendly policies have significantly expanded its global appeal. High-net-worth individuals continue to target luxury segments, while mid-market demand remains underpinned by population growth, job creation, and an influx of expatriates. The market is forecast to maintain a 2.28 per cent annual growth rate through 2029, reaching $759.04 billion, pointing to a measured yet sustainable trajectory.

The parallel growth of the real estate services sector further underscores the breadth of opportunity. Mordor Intelligence values the UAE's real estate services market at $18.45 billion in 2025, with projections of $24.75 billion by 2030 at a compound annual growth rate of 6.05 per cent. Brokerage, property management, valuation, and facility management services are increasingly in demand as developers roll out complex projects spanning logistics hubs, data centres, branded residences, and mixed-use communities.

Residential apartments and condominiums accounted for 46 per cent of services market share in 2024, but logistics assets are set to be the fastest-growing component over the coming years, supported by the UAE's rise as a global trade and technology hub.

Geographic diversification within the UAE is also gaining momentum. While Dubai and Abu Dhabi remain the powerhouses, Ras Al Khaimah is projected to record one of the highest growth rates in the coming years, thanks to its tourism-led development strategy, competitive land values, and improving connectivity. In residential real estate, the emirate is forecast to expand at a 10.05 per cent CAGR to 2030, while in services it is also tipped to lead growth as investors look beyond traditional markets.

Still, the sector faces challenges. Fitch Ratings recently cautioned that Dubai residential prices could soften by as much as 15 per cent through late 2025 into 2026, as a wave of new supply - over 200,000 units due for delivery - tests absorption levels. Yet analysts note that the market's maturity, along with the financial strength of developers and lenders, leaves it better positioned to withstand corrections than in previous cycles. Premium projects in sought-after locations are expected to hold value, while broader market adjustments may improve affordability and extend the investment cycle.

Meera Sivaorasad, executive director of Condor Developers, said the real estate sector in 2025 is entering a new phase of maturity.“The near $700 billion valuation is not just a statistical milestone but a reflection of structural depth, sustained demand, and institutional confidence.”

V.S. Bijukumar, a property consultant, said coupled with the expanding services arm, the sector is evolving into a comprehensive ecosystem that underpins long-term growth.“For investors, developers, and global capital seeking both resilience and returns, the UAE real estate market stands out as one of the most compelling destinations worldwide.”

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