UAE: How Mixed-Use Developments Redefine City Living

Mixed-use developments are rapidly transforming the urban landscape of the UAE, emerging as a cornerstone of modern city planning. These integrated communities - blending residential, commercial, and recreational spaces - are redefining how people live, work, and socialise in cities like Dubai and Abu Dhabi.

Driven by rapid urbanisation, shifting lifestyle preferences, and a strong push for sustainability, mixed-use projects offer unparalleled convenience and community-centric living. Developments such as Dubai South, Meydan One, and Expo City Dubai exemplify this trend, providing walkable environments with seamless access to amenities.

From an investment perspective, mixed-use developments are proving highly lucrative. Institutional investors are increasingly drawn to these projects for their diversified income streams and strong capital appreciation. Rental yields in prime areas like Business Bay range from 6.5 per cent to 8.1 per cent, outperforming single-use properties, while annual appreciation in mixed-use zones has reached 7 per cent. As an example, Sobha Siniya Island recorded a 25 per cent price appreciation within its first year, demonstrating not only market demand but also growing confidence in the mixed-use mode.

Such developments are inherently more resilient than traditional projects. Their built-in diversification across asset types attracts a broader range of resident profiles and generates multiple income streams, making them a lucrative conduit for long-term value creation.

With residential, commercial, hospitality and retail all in one location, such a project will almost always be protected from downturns, experts say.“Mixed use developments will always be one notch up a standard project. Sometimes residential does well, sometimes commercial does well, sometimes retail does well, sometimes hospitality does well, so there is always an advantage,” Omar Bin Farooq, founder and CEO of One Broker Group, explained.

Sustainability is another key driver. These developments often incorporate green building practices, smart technologies, and eco-friendly infrastructure, aligning with the UAE's Vision 2030. Initiatives such as Dubai Green Building Regulations and the Golden Visa programme further enhance their appeal to global investors.“A live-work-play community is no longer a distant vision of luxury; it's the new standard for discerning residents and professionals,” Francis Alfred, managing director of Sobha Realty, told KT LUXE.

According to Sobha's internal database, from January 2024 to May 2025, Indian buyers drove 18 per cent of qualified sales in the realtor's mixed-use developments, while Europeans across 35 nationalities contributed around 19 per cent. This reflects a strong and sustained interest in lifestyle-driven communities that offer both residential and commercial appeal. British investors have also shown steady growth, rising to 6 per cent in 2025, while American, Iranian, and Chinese buyers each contributed around 5 per cent, with a slight uptick observed in the American segment this year.

As the UAE real estate market continues to diversify, mixed-use communities are gaining prominence in meeting the evolving needs of modern residents.“At Sobha Realty, we pair this trend with a strong focus on quality through our Backward Integration model, overseeing design, architecture, contracting, and construction to ensure every project delivers lasting value,” Alfred said.

“The rise of mixed-use developments in the UAE is a natural outcome of the nation's rapid growth and ambition to grow its population by offering exceptional community living. These projects highlight a shift in urban planning towards integrated, walkable, and experience-driven residences where life, leisure, wellness, and work come together. Beyond enhancing quality of life, they are positioning the UAE as a global benchmark for long-term expatriation, offering a stable and nurturing environment for families,” said Omar Derbas, executive director of Palma Development.

The developer's Dh5 billion Serenia District at Jumeirah Islands has been designed with this vision in mind, featuring six towers centred on six distinct lifestyle zones and integrated through a common podium. At its heart is the 100,000sqft Serenia Signature Clubhouse, a multi-level facility offering residents access to a panoramic infinity pool, state-of-the-art gym, rooftop café, spas, indoor paddle and basketball courts, games rooms, and curated retail and dining.

Farhad Azizi, group CEO of Azizi Group, said:“The UAE real estate landscape is undergoing a clear, pronounced shift towards integrated, mixed-use communities. Buyers are no longer drawn solely to the four walls of their apartments; they are seeking the holistic experience that their surroundings provide. Today's homeowners and investors want environments that seamlessly combine residences with retail, dining, leisure, wellness, and cultural offerings - all within walkable, well-connected communities.

The developer's lagoon-centric Azizi Venice in Dubai South and the Italian-inspired Azizi Milan on Mohammed bin Zayed Road embody this transformation. Together worth more than Dh100 billion, these masterplans are among the nation's most ambitious mixed-use developments, carefully designed to generate lasting community value while ensuring long-term investor returns.

“As Dubai advances towards a projected population of 5.8 million by 2040, such integrated developments will be essential in sustaining quality of life and driving sectoral growth. Mixed-use projects not only enrich daily living but also consistently outperform single-use schemes, historically achieving 15–20 per cent higher capital appreciation,” Azizi said.

Data from recent market reports show these mixed-use developments make up around 85 per cent of new urban projects and offer higher rental yields compared to traditional residential-only areas, attracting a varied demographic.

Jacob & Co. Beachfront Living by Ohana at Al Jurf, Abu Dhabi, is a standout project in the city's beachfront scene. The Dh4.7 billion development combines branded residences with wellness, and leisure to create a lifestyle all in one place.

Looking ahead, mixed-use projects will keep shaping the way luxury living evolves across the Emirates.“These communities fit well with national priorities like sustainability, innovation, and cultural vitality. As the UAE continues to attract global talent and investment, demand for such communities is set to rise,” said Husein Salem, CEO of Ohana Development.“Anything less than a comprehensive, self-sustained community now feels incomplete - people no longer want just a home, they want a city within walking distance. The future of real estate in Dubai won't be built in isolation,” he added.

Looking ahead, the outlook for mixed-use developments in the UAE remains robust. With continued government support, evolving smart city frameworks, and rising demand for integrated living, these projects are set to play a pivotal role in shaping the future of urban life in the region.

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