(MENAFN- Khaleej Times)

The UAE real estate market in 2025 is undergoing a transformative phase, driven by technological innovation, investor confidence, and strategic urban development. In the first half of the year, the country recorded over Dh893 billion in property transactions, with Dubai contributing Dh431 billion alone.

The market is increasingly shaped by AI-powered platforms and smart infrastructure, enhancing transparency and efficiency across transactions. Foreign investment remains robust, with over 94,000 investors participating in the market in H1 2025.

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Off-plan properties continue to dominate, supported by flexible payment plans and high resale potential. Across the Emirates, price appreciation is evident, with Abu Dhabi and Dubai leading, while emerging hotspots in Sharjah and Ras Al Khaimah gain traction.

Dubai: A mature yet dynamic market

Dubai's real estate sector continues to thrive, with over 125,000 transactions in H1 2025, marking a 25% year-on-year increase. Residential prices rose by 20% in 2024, and rental rates climbed 19%, with villas outperforming apartments. Prime villa communities such as Al Barari and Arabian Ranches are projected to see gains of up to 20% in the next 12 months. The market is increasingly driven by end-user demand, lifestyle preferences, and long-term investment strategies. Gross rental yields range between 6% and 9%, with branded residences and waterfront properties attracting high-net-worth individuals.

In line with this trend, AUM Developments, has recently announced significant plans to expansion across Dubai's residential landscape with three projects now under construction and a fourth development set to launch in Warsan.

The developer has officially broken ground on two residential projects - Veda in Jumeirah Village Circle and Ryze in Warsan, as well as a commercial project, Vertex Pointe, in Arjan. A fourth project is also coming up in Arjan, offering commercial spaces in the heart of the thriving community. The combined GDV across the current portfolio stands at approximately Dh400 million.

“This year reflects the momentum we've built around our development strategy by advancing three projects in the first three quarters of the year, while planning our fourth,” said Deepak Batra, Managing Director of AUM Development.“We pay keen attention to selecting locations that genuinely support how people want to live in Dubai, prioritising connectivity, vibrant communities, and access to emerging neighbourhoods.”

Ras Al Khaimah: The rising star

Ras Al Khaimah (RAK) has emerged as one of the UAE's fastest-growing property markets. In Q1 2025, real estate activity surged to Dh13.06 billion, an 862% increase from 2017. Prices rose 10–15% year-to-date, with off-plan sales accounting for 85% of transactions. Branded residences and luxury developments on Al Marjan Island and Mina are driving demand, with rental yields for apartments averaging 5.7%. With major infrastructure projects and global investor interest, RAK is positioning itself as a premium lifestyle and investment destination.

As the Wynn integrated resort inches closer to completion, a number of projects are being launched in the emirate. Abu Dhabi National Hotels (ADNH), one of the UAE's most trusted hospitality investment and management companies, has announced the launch of The Residences at Nasim Al Bahr, a Luxury Collection Resort & Spa, Al Marjan Island, marking the group's debut in Ras Al Khaimah's thriving luxury real estate sector. The total development value stands at Dh3 billion. The project represents a strategic expansion of ADNH's renowned footprint beyond Abu Dhabi and Dubai.

Sheikh Ahmed Mohammed Sultan Suroor Aldhahiri, Vice Chairman & Managing Director, Abu Dhabi National Hotels, said:“Al Marjan Island is one of the UAE's most dynamic destinations, and we are proud to bring five decades of our reputation for excellence to this vibrant market landscape. Through our collaboration with Marriott International and The Luxury Collection brand, we are offering discerning buyers an exceptional lifestyle that combines desirable waterfront living with enriching amenities and distinctive benefits.”

Jaidev Menezes, Regional Vice President – Mixed-Use Development, EMEA at Marriott International said:“The Luxury Collection Residences are found in the world's most exciting and desirable destinations. With a compelling narrative and impeccable service for owners, and a spectacular setting on Al Marjan Island, Nasim Al Bahr is an exceptionally designed addition to our portfolio.”

Umar Bin Farooq, Founder, One Broker Group, the exclusive sales partner for the project, commented:“The Residences at Nasim Al Bahr presents a unique proposition in the Ras Al Khaimah real estate market. Not only does it combine premium waterfront positioning with the internationally recognized brand and hospitality of Marriott International, it also offers a compelling price point with an unmatched 40:60 payment plan.”

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