UAE Real Estate Sees Record-Breaking Start to 2025 with Over Dh239 Billion in Deals

Abu Dhabi / Dubai : The UAE’s real estate sector recorded a remarkable performance in the first quarter of 2025, with total transactions across five emirates exceeding Dh239 billion, signaling strong investor confidence and continued momentum in the property market.

Between January and March, a total of 94,719 sales, purchase, and mortgage transactions were registered in Abu Dhabi, Dubai, Sharjah, Ajman, and Ras Al Khaimah, according to official data from government property registries and industry reports. The figures highlight the UAE’s sustained appeal for investment, residency, and long-term living.

Sector Driven by Economic and Lifestyle Appeal

Talal Al Dhiyebi, Group CEO of Aldar Properties, credited the sector’s growth to the UAE’s broader economic diversification, lifestyle attractiveness, and regulatory clarity.

“The UAE’s real estate boom is fuelled by the country’s progress on multiple fronts — economic diversification, lifestyle appeal, and regulatory clarity — making it one of the world’s most attractive destinations to live, work, and invest,” Al Dhiyebi told Emirates News Agency (WAM).

Aldar reported Dh8.9 billion in sales during Q1 2025, a 42% increase year-on-year. The company’s portfolio saw occupancy levels exceed 95%, indicating strong demand across residential, commercial, and mixed-use assets.

Dubai Leads with Dh193 Billion in Transactions

Dubai maintained its dominance in the national market, with Dh193 billion in real estate deals across 58,039 transactions — a 16.2% increase in value and 31.5% rise in volume compared to Q1 2024.

According to the Dubai Land Department:

• Dh142 billion came from 45,077 sales deals (30% YoY increase)
• Dh41 billion from 10,949 mortgage deals (27% volume increase)
• The rest were grants and exchanges

Analysts cite Dubai’s investor-friendly policies, high rental yields, and strong demand for both off-plan and ready properties as key growth factors. Long-term visas and business reforms continue to attract global investors.

Abu Dhabi Records 34.5% Growth

Abu Dhabi logged Dh25.3 billion in Q1 real estate activity — a 34.5% increase from Q1 2024.
According to the Abu Dhabi Real Estate Centre:

• Dh15.51 billion from 3,819 sales deals (26.7% YoY rise)
• Dh9.8 billion from 3,077 mortgage deals (49% YoY growth)

Major development announcements and infrastructure projects have driven institutional interest and end-user demand in the capital.

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Sharjah Reports Fastest Growth Among Smaller Emirates

Sharjah saw Dh13.2 billion in transactions from 24,597 deals, a 31.9% YoY increase, the highest among the northern emirates.
The emirate’s affordability and proximity to Dubai, along with a growing mid-market housing sector, continue to attract both local and regional investors.

Ajman and Ras Al Khaimah Maintain Upward Trajectory

• Ajman reported Dh5.55 billion in real estate transactions, up 29% YoY.
  • Dh3.69 billion from 3,132 sales deals
  • Dh905 million from 498 mortgage deals
• Ras Al Khaimah posted Dh2.4 billion in residential off-plan sales across 1,300+ transactions, according to CBRE.
  The emirate is attracting buyers with lifestyle-centric, coastal, and resort-style developments.

Strong Outlook Ahead

Industry experts highlight multiple drivers behind the robust performance:

• Flexible residency policies
• High rental yields and capital inflow
• Continued government investment in infrastructure and tourism
• Strong macroeconomic stability

The surge in off-plan sales and consistent demand for residential and commercial spaces reflect growing domestic and international confidence in the UAE property sector.

As the second quarter progresses, analysts expect the momentum to continue, with new high-profile project launches and increasing global investor interest.