Q2 2025 Overview: What’s Driving the UAE Real Estate Scene?
UAE Real Estate Market Review Q2 2025: Key Insights
1 Economic Strength: The UAE economy continues on a strong trajectory, with positive revisions to its 2025 growth forecasts. This uplift is primarily fueled by the robust performance of the non-oil sector and increasing foreign direct investment, alongside a recovery in oil production. While ongoing geopolitical tensions and global trade uncertainties present potential worldwide challenges, our visionary leaders are implementing significant strategies to continually strengthen the economy.
2 Residential Activity: Residential markets across both Dubai and Abu Dhabi maintain robust activity, characterized by the consistent introduction of off-plan projects during Q2. This strong launch pipeline is bolstered by persistent investor demand, which, in turn, continues to underpin significant price growth. Nevertheless, early indicators suggest a degree of moderation is now emerging in both sales and rental values within certain communities
3 Office Market Performance: Office spaces in both Emirates are experiencing high occupancy rates and significant rental growth. This trend is driven by a limited influx of new supply and consistent demand from key sectors, including finance and technology.
4 Tourism’s Vital Role: Tourism remains a cornerstone of the UAE’s economy. A consistent year-on-year rise in visitor numbers is boosting hotel performance across the country, reinforcing the sector’s critical contribution to economic diversification and non-oil revenue generation.
5 Retail Space Shortage: The retail sector is grappling with a scarcity of available space in prime mall locations, leading to sustained rental increases. With a restricted pipeline of new developments in the short term, the market is expected to remain largely beneficial for landlords.
6 Resilient Industrial Sector: Industrial property markets are proving robust. Growing interest from international investors and developers is supporting ongoing rental growth, particularly evident in high-demand logistics assets.