UAE Property Market Report 2025: Trends, Insights, and Key Findings

Everything You Need to Know About the UAE Real Estate Market This 2025

According to 2024 figures, the United Arab Emirates recorded around AED 893 billion in transactions in the real estate sector.

The same report states Dubai led the market with AED 760.7 billion transactions, followed by Abu Dhabi with AED 79.3 billion.

This year, the UAE real estate market hopes to replicate this success. Property investment is expected to be strong, with both local and international buyers betting on the country’s continued growth and stability.

UAE Property Market Overview

The UAE’s residential sector continues to perform well. There is a constant demand for new homes, which remain a reliable income-generating option.  

The increasing population growth and the influx of ultra-high net worth (UHNW) individuals and family offices are the main factors driving the high residential property demand in the UAE.

The country’s positive economic expansion and popularity as a global investment hub also fuels this demand.

Dubai and Abu Dhabi remain the country’s prime real estate spots. Dubai’s stable economy, healthy financial standing, and openness to new opportunities for growth make it a popular option for investors.

Abu Dhabi is known for its substantial sovereign wealth capital and low-tax environment. Its high standard of living and expat-friendly policies attract UHNW individuals and corporations year in and year out.

The UAE property market is gaining momentum in 2025 thanks to strong buyer demand. Off-plan properties are leading the way, with developers rolling out new incentives and flexible payment plans to keep momentum high. Prices are also continually rising in high-demand areas, which is why rental markets continue to be competitive. 

Average Property Prices in the UAE

Presently, Umm Al Quwain, the emirate between Ras Al Khaimah, Sharjah, and Ajman, has the highest average property price of USD 619 per sqm. Dubai follows with an average price of USD 450 per sqm, maintaining its status as a premium location.

Despite leading the country in overall price growth, Abu Dhabi offered more accessible prices at USD 359 per sqm.

Ajman offers the most affordable rates, at USD 77.34 per sqm. Fujairah, Sharjah, and Ras Al Khaimah presented mid-range prices.

Top 10 Most Expensive Areas in the UAE

The UAE is known for its luxury properties, with each city having dozens of upscale neighborhoods attracting the affluent and those who want a more prestigious lifestyle.

Abu Dhabi, Sharjah, and Dubai lead the pack with the greatest number of areas with expensive properties. Zone 8 in Mohammed Bin Zayed City, Abu Dhabi, claims the title of the most expensive area in the UAE.

Sharjah has three high-value neighborhoods: Shaghrafa 2, Sharjah Industrial Area 17, and Rolla Sharjah.

Dubai’s most expensive areas are Oak Villas in Al Barsha and Westar Les Maisonettes in JVC, which maintain the emirate’s reputation for upscale residential living. 

Abu Dhabi’s Zone 3, Hydra Village, Mubarak Bin Mohammed Street, Zone 30, Mohammed Bin Zayed City, and Qattouf Community, Al Raha Gardens round out the top 10 most expensive areas in the UAE. They reflect the city’s growing high-end housing market.

Property Price Growth in the UAE

The UAE’s real estate market experienced a significant year-on-year growth in 2024. Abu Dhabi leads with a massive 202.02% average increase in property prices and the highest number of rising properties at 8,490.

Dubai ranks second in both metrics, showing a 124.21% price increase and 6,779 properties appreciating in value.

Sharjah, Ras Al Khaimah, and Umm Al Quwain follow with moderate gains. Their numbers suggest a growing interest in emerging areas outside Dubai and Abu Dhabi, the country’s popular investment hubs.

Fujairah also has a good showing despite a modest growth at 37.85%. The emirate has a total of 2,853 properties increasing in price.

Ajman is the only emirate to show a decline of 78.22%, even with 3,846 properties increasing in value. This indicates volatility and mixed performance within the city.

Top 10 UAE Areas With the Highest Property Price Growth (2020–2025)

Seven of the top 10 areas with the highest price growth between 2020 and 2025 are in Abu Dhabi. The apartments and villas for sale in Abu Dhabi highlight the emirate’s growing appeal for investors and homeowners.

However, Naseem Villas in Sharjah recorded the highest property price growth in the UAE. It demonstrated a staggering increase of 243.27% over five years.

Abu Dhabi has two areas in the top three. The first is Remah in Al Ain, which ranks second with a 241.62% increase. Zone 12 in Mohammed Bin Zayed City follows in third with 237.90%.  

Dubai rounds out the list with Meydan Avenue and Palm Jebel Ali, both of which have seen property price growth of over 200%. 

Luxury Property Market in the UAE

The UAE is now the Middle East’s top recipient of foreign direct investment (FDI). The country is expected to maintain this status, and the real estate market is pitching in with its offering of luxury properties. 

Dubai and Abu Dhabi are in the top 10 list of luxury real estate hot spots in the world. Dubai’s upscale properties are considered one of the most affordable in the world: you can buy a 146 square-meter home in a prime area of the city for USD 1 million, but the same amount may only get you a small apartment in a European country.  

The UAE’s real estate market offers investors and homeowners the opportunity to own luxury property and hold the prestige it comes with at a more affordable price.  

UAE Areas With the Most Million-Dollar Homes Listings

Abu Dhabi tops this list with 352 million-dollar homes for sale, slightly ahead of Dubai, which has 343.

Umm Al Quwain follows in third with 302 listings. Sharjah and Fujairah also post significant numbers, with 276 and 251 respectively.

Ajman has 199 listings, while Ras Al Khaimah has 134.

Top 10 UAE Areas With the Most Million-Dollar Homes Listings

Abu Dhabi claims the top spot, with Muroor Road in Al Muroor having the most million-dollar home listings in the UAE.

Sheikh Khalifa Bin Zayed Street in Abu Dhabi secures the second spot. Mushrif Villas and Seashore Villas in Rabdan are the other areas in this emirate with luxury properties on the market.

Sidra Villas II in Dubai Hills Estate, Dubai takes the third place for the top areas with the most million-dollar properties. Zinnia in AKOYA Oxygen, Mohammed Bin Rashid Boulevard, and Tulip Park in Jumeirah Village Circle (JVC) also have their fair share of high-end residential listings.

Mughaidir Suburb in Sharjah boasts several listings in the million-dollar range as well.

Conclusion

The UAE’s property market is currently characterized by a strong buyer demand, rising property values, and a steady inflow of foreign investment. Dubai and Abu Dhabi continue to dominate the scene, but the other emirates are gaining traction with buyers looking for new opportunities.

The real estate sector remains one of the country’s reliable pillars driving its economic growth. 

Market Outlook for 2025  

Each emirate in the UAE offers a different real estate outlook for 2025. Here’s a look at what buyers and investors can expect across the country.

Abu Dhabi

The capital city’s real estate market is riding on last year’s strong momentum. Both local and global investors are drawn to its popular areas and freehold zones, such as Yas Island, Saadiyat Island, and Al Reem Island. Its waterfront and lifestyle-centered communities are also quite popular.

Abu Dhabi has over 30 projects in development. Its many options and reasonable prices make this city highly desirable for buyers aiming for medium- and long-term growth. 

Dubai

Dubai’s world-famous tourist destinations and continuous entry of foreign workers and investors have kept its property market steady and robust for the past several years. The constant improvements in the transportation, healthcare, and educational sectors make its various areas more appealing.

All these are expected to drive the industry’s growth this year.

Popular areas include Jumeirah Village Circle (JVC), Dubai Investment Park, Dubai Hills Estate, and Green Community.

Ras Al Khaimah

This emirate is poised to give Dubai and Abu Dhabi a run for their money this 2025. Its property market offers high-end options at better prices that can be turned into rentals for tourists who visit the city in droves.

Ras Al Khaimah’s investor-friendly property regulations, investment benefits, tourism appeal, and exciting projects, including the Wyn Gaming resort on Marjan Island, make it a real estate hotspot.

Sharjah

The third biggest emirate in the UAE is considered the country’s cultural capital, educational, and industrial hub. The emirate is constantly looking for ways to attract investors and home buyers, including giving foreigners full ownership of properties in designated areas.

Sharjah is also focusing on developing eco-friendly smart homes and communities that support a relaxing, family-friendly lifestyle. This emirate is an excellent option for those looking for properties redefining urban living for personal use or business.

Umm Al Quwain

Umm Al Quwain is another great alternative for those who want to expand their real estate portfolio in the UAE. Properties here are affordable and come in a wide array of options in family-friendly communities. It also boasts natural landscapes that offer tranquility and a more laid-back lifestyle.  

The ongoing infrastructure and real estate development projects mean that Umm Al Quwain is serious about attracting investors and home buyers this year.

Ajman

Ajman started the year strong with real estate transactions totaling over AED 2 billion in the first quarter. This hidden gem boasts beaches, wadis, and mountains that appeal to tourists, particularly those in Dubai, which is only around 30 minutes away.

The emirate’s tourist spots, investment-friendly environment, and competitive prices will sustain its momentum in the real estate market this 2025.

Fujairah

Fujairah’s real estate sector has been experiencing steady growth in the past years. Its variety of residential options, from luxury homes to more budget-friendly apartments and villas, attracts local and foreign investors.

Although Fujairah’s market is still maturing, its affordable properties, beautiful coast, and modern amenities are helping it stay competitive with the other emirates.

Overall, the outlook for the UAE’s real estate market remains optimistic, driven by stable demand, supportive policies, and a variety of options. 

Recommendations for Investors

Investors looking at the UAE property market in 2025 should keep a close eye on both established hotspots and emerging areas. While Dubai and Abu Dhabi remain strongholds, the rising activities in Ras Al Khaimah, Sharjah, and Umm Al Quwain suggest growing opportunities outside the usual prime zones.

The flexible payment options and potential high returns of off-plan properties make them smart investments worth considering this year.

Luxury properties continue to appeal to international buyers, but mid-range segments are also showing high rental demand. Sustainability and smart home features are major selling points for many interested homeowners and short- and long-term tenants, so consider these types of residences.

If you’re planning to diversify your portfolio in different cities and property types, 2025 is a great year to follow through as its real estate sector continues to achieve steady success.

Methodology

This report is based on publicly available data sourced from the Dubai Land Department’s Open Data Portal and the PropertyFinder website. The analysis focuses on property pricing and investment trends across all seven emirates of the United Arab Emirates: Dubai, Abu Dhabi, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah. The following data sources and timeframes were used:

1. Projected price increases by area (Jan–Dec 2024): Data obtained from the Dubai Land Department to identify areas with the highest potential for property price growth throughout 2024.
2. Top investment areas: Additional analysis using the same portal to determine the most promising areas for real estate investment opportunities.
3. Areas with the most million-dollar homes: PropertyFinder search data was used to identify cities with a high concentration of luxury properties.
4. Typical home values by area: Typical values for various property types (including apartments, duplexes, townhouses, and condos) were compiled using listings from PropertyFinder.