The year marked a defining period characterized by strong transactional activity, sustained developer confidence and policy-backed market growth. While all emirates recorded positive performance, Abu Dhabi emerged as a clear standout, supported by record sales volumes, rising end-user participation and growing international investor interest.
Abu Dhabi Delivers Record Performance
Abu Dhabi delivered one of its strongest residential real estate market performances on record in 2025, with transactions exceeding 21,000 units. Off-plan sales accounted for a growing share of activity, with 15,000 transactions, while completed unit sales reached nearly 6,000.
The emirate added 7,000 residential units in 2025, complemented by record-breaking launch volumes that signal renewed developer confidence. Construction activity was further supported by the recommencement of several previously on-hold projects, particularly within established communities such as Al Reem Island.
The year saw the highest concentration of branded and lifestyle-led development launches to date, many reaching sell-out status shortly after release. Separately, Abu Dhabi’s housing authority announced approximately 40,000 housing units and residential plots for UAE nationals.
Leasing activity remained firmly positive, with high occupancy levels maintained across the Investment Zones. Prime and high-end apartments increased by 10 to 25 percent, depending on the community, while mid-quality apartments saw growth of 7 to 35 percent. The villa segment recorded average increases of 5 to 10 percent overall, with prime communities outperforming at 10 to 15 percent.
The office market recorded its strongest performance in over a decade, driven by limited availability of premium space, corporate expansion and rising demand for flexible, high-quality workplaces. Several Grade A assets approached full occupancy, including Aldar’s Quartz Tower.
Dubai Records Historic Completion Volumes
Dubai remained a global focal point for real estate activity, recording the highest volume of residential completions in its history during 2025. The emirate delivered approximately 37,950 apartments and 9,700 villas, representing the highest residential delivery volume on record.
The off-plan segment continued to underpin sales activity, supported by a steady flow of new launches and increasingly flexible payment structures. Well-positioned and competitively priced projects continued to perform strongly.
In the rental market, growth moderated as affordability considerations became more prominent. The introduction of the Smart Rental Index in early 2025 played a pivotal role in guiding renewal negotiations, enhancing transparency and supporting a gradual stabilization of rental growth.
The Dubai office sector continued its growth phase, characterized by substantial increases in demand, rising occupancy levels and rental rates, particularly for Grade A and well-located assets. Commercial supply was limited in 2025, with less than 280,000 square feet of office space delivered. However, new supply is expected to pick up significantly in 2026 with approximately 1.7 million square feet anticipated for handover.
Northern Emirates Gain Momentum
Across the Northern Emirates, 2025 saw accelerating development momentum and rising investor interest. A growing pipeline of residential, hospitality and mixed-use projects reflects improving confidence in the region’s long-term prospects, supported by government initiatives, infrastructure investment and tourism growth.
Sharjah and Ras Al Khaimah continued to anchor activity, while Ajman recorded improving traction among both end-users and investors, supported by competitive pricing and improving project quality.
Residential supply across the Northern Emirates is expected to become increasingly visible in 2026, as a growing number of developments transition into active handover phases. Approximately 12,900 residential units are forecast for completion, with delivery activity primarily concentrated in Sharjah, followed by RAK and Ajman.
Policy Initiatives Support Market Growth
Several major policy initiatives underpinned real estate market confidence throughout 2025. These include the continued implementation of formal rental index frameworks in Abu Dhabi, Dubai and Sharjah, the launch of Dubai’s First-Time Home Buyer Program in July 2025, ongoing housing initiatives in Abu Dhabi, continued regulatory reforms, digitalization of transactions and confirmation that Etihad Passenger Rail services are scheduled to commence operations in 2026.
With 7,000 units scheduled for completion in Abu Dhabi and sustained delivery across Dubai and the Northern Emirates, the UAE real estate market is positioned for continued growth supported by disciplined development, policy frameworks and strong fundamentals.
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