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Colliers Report: UAE Real Estate Market Extends Growth Momentum In Q3 2025
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| Colliers Report: UAE Real Estate Market Extends Growth Momentum in Q3 2025 Abu Dhabi,December 2025 – Colliers' Q3 2025 UAE Real Estate Market Report shows that the market continues to perform strongly across residential, office, and mixed-use sectors. This momentum is driven by solid economic conditions, growing investor confidence, and one of the world's most active development pipelines. Abu Dhabi remains on a stable long-term growth trajectory, supported by rising demand and ongoing infrastructure investment, while Dubai continues to see unprecedented expansion with multiple projects underway. The report offers a detailed view of key market indicators, supply levels, demand trends, and pricing across Abu Dhabi, Dubai, Al Ain, and the Northern Emirates. Abu Dhabi Residential and Office Market: The Abu Dhabi real estate market maintained strong momentum in Q3 2025, supported by new launches and a steady flow of handovers. Approximately 1,400 new residential units were delivered in Q3, concentrated in Yas Island, Jubail Island and Al Raha Beach. Several major development announcements included a new residential community Masdar City by Taraf and Masdar, Four Seasons Private Residences on Saadiyat Island and Fahid Beach Terraces on Fahid Island. In addition, 13 new residential communities were recently announced by Abu Dhabi's local housing authority. The developments will collectively deliver 40,000 homes and plots, with six communities comprising more than 14,000 units, planned within Abu Dhabi Region. Residential rental rates recorded another period of strong upward movement. Apartment rents increased by an average of 5% quarter-on-quarter and 16% year-on-year, with the mid- and low-end segments showing pronounced annual gains of 10% to 30%. Prime and high-end apartment rents rose between 5% and 11% quarterly and 11% to 25% annually, while villa rents grew 2% to 11% over Q3 and 3% to 18% year-on-year. High occupancy across all Investment Zones continues to highlight strong end-user and investor demand, further reinforced by the Emirate's reputation for safety, stability and high-quality living. Sales activity reached unprecedented levels. Abu Dhabi recorded nearly 6,500 residential transactions in Q3 2025, representing a 233% quarterly and 175% annual increase. Off-plan sales dominated with over 4,000 apartments and 885 villas and townhouses sold during the quarter. Completed property transactions also performed strongly with over 1,500 sales, indicating a 10% quarterly and 32% annual rise. Apartment prices grew 8% quarter-on-quarter and went up to 28% year-on-year, while villa prices rose by approximately 7% during Q3 and 25% annually. The office sector remained exceptionally strong, driven by corporate relocation activity, limited premium supply and strong business confidence. Al Maryah Island maintained near full occupancy, with fitted Category A rents exceeding AED 3,000 per square metre, while the micro-offices concept attracted significant demand with rates surpassing AED 4,500 per square metre. Premium and Grade A space across the city continues to record rising rents and high pre-leasing activity for upcoming completions. Dubai Residential and Office Market: Dubai's real estate market continued to show depth and resilience in Q3 2025, with 8,100 apartments and 1,650 villas delivered, reflecting a moderation in villa handovers compared to the previous quarter. New project launches eased following a very active first half of the year, with approximately 34,000 units announced in Q3, signalling a more sustainable flow of upcoming supply. Office activity, however, increased, with over 2 million square feet of new office space announced during the quarter, led largely by developments in Business Bay. Dubai's rental market moved into a more balanced phase, with apartment rents rising 2% quarter-on-quarter and 5% annually, and villa rents increasing 2% quarterly and 7% annually. The gap between established, supply-constrained communities and areas experiencing substantial new handovers is widening, with landlords in newer developments adopting competitive pricing to boost take-up and / or maintain occupancy. Sales prices continued their steady ascent, with apartment and villa prices rising 3% and 4% respectively in Q3 and 13% and 14% year-on-year. Off-plan sales dominated activity, supported by flexible payment plans and government initiatives. Momentum has also been buoyed by the introduction of the First-Time Home Buyer Programme, launched in July 2025, which offers preferential pricing and tailored mortgages for off-plan units up to AED 5 million, along with installment payment options for DLD fees. Tokenization and REIT expansion continue to reshape Dubai's investment landscape, broadening investor participation and promoting long-term market maturity. The office market registered notable rental gains, with quarterly increases across all monitored districts such as Business Bay, DIFC, JLT, Sheikh Zayed Road, Bur Dubai and Barsha Heights, rising between 3% and 7%. Annual growth ranged from 14% to 32%, underlining sustained demand for Grade A commercial space. Al Ain and Northern Emirates Market: Q3 2025 saw substantial project launch activity across the Northern Emirates, with approximately 13,000 new residential units announced. Ras Al Khaimah accounted for 6,600 units, Sharjah for 5,300, and Umm Al Quwain for 700. Key releases included Al Hamra Greens and Miraggio on Al Marjan Island in RAK, and Masaar 3 by Arada in Sharjah. Limited handovers took place, mainly Danah Bay Phase 1 in RAK and Zorah Beach Resort in Ajman, though close to 7,700 units are scheduled for completion in Q4. Rental growth remained robust, with average apartment rents increasing 3% quarter-on-quarter and 12% annually. Sharjah and RAK led quarterly growth at 4%, with Ajman following at 2%. Sharjah's rental market is moving toward stability following the introduction of the Sharjah Rental Index, while master-plan communities such as Maryam Island, Masaar and Aljada continue to command higher rents. Sales markets performed strongly as well. RAK recorded 4% quarterly and 18% annual apartment price growth, while Sharjah saw prices rise 3% quarterly and 12% annually. RAK's transformation continues to accelerate under the RAK Vision 2030 framework, with population expected to grow from 400,000 to 650,000 by 2030. High-profile branded projects on Al Marjan Island and the activation of the 3-million-square-foot RAK Central district continue to cement the Emirate's position as a rising global investment destination. Al Ain maintained steady upward movement in Q3, with new leasing contracts rising around 5% over previous agreements. In Al Ain market, apartment rents grew by up to 9% annually, with villa rents increasing by around 3% year-on-year. Retail leasing recorded ongoing gains, particularly in F&B, while Al Ain Municipality's new Al Wadi Commercial Complex, scheduled for completion in Q1 2026, is set to expand the retail offering. Five new local housing projects comprising roughly 10,500 units were also announced during the quarter, pointing to an active development horizon. About Colliers: Colliers is a global diversified professional services and investment management company. Operating through three industry-leading platforms – Real Estate Services, Engineering, and Investment Management – we have a proven business model, an enterprising culture, and a unique partnership philosophy that drives growth and value creation. For 30 years, Colliers has consistently delivered approximately 20% compound annual returns for shareholders, fuelled by visionary leadership, significant inside ownership and substantial recurring earnings. With over $5.0 billion in annual revenues, a team of 24,000 professionals, and more than $100 billion in assets under management, Colliers remains committed to accelerating the success of our clients, investors, and people worldwide. |
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