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Tag: Dubai real estate

  • Dubai Records Dh422 Million Apartment Sale Amid Regional Tensions

    Dubai Records Dh422 Million Apartment Sale Amid Regional Tensions

    A luxury apartment spanning 31,201 square feet at Aman Residences Dubai on the Jumeirah Peninsula has been sold for Dh422 million ($115 million), marking one of the most significant property transactions in the emirate’s history amid heightened regional uncertainty.

    The deal, confirmed by fäm Properties, was completed off-plan and valued at Dh13,525 per square foot according to DXBinteract, the data platform developed in partnership with Dubai Land Department.

    Firas Al Msaddi, CEO of fäm Properties, said the transaction reflects fundamental structural strength in Dubai’s real estate sector.

    “The sale of an ultra-luxury unit at this level is particularly relevant in the current circumstances. It underlines the fact that the Dubai real estate market is structurally stronger than it has ever been. Over 70 per cent of transactions are now end-user driven, not speculative. The buyer base is globally diversified,” Al Msaddi stated.

    He emphasized that mortgage activity has doubled in four years and the regulatory environment has matured, with market fundamentals remaining unchanged despite regional events.

    The transaction comes as Dubai’s ultra-prime segment continues to demonstrate resilience. The sale represents the third most expensive apartment ever recorded in the emirate.

    Market analysts point to shifting buyer dynamics supporting the sector’s evolution. End-users transitioning from rental to ownership, continued international capital participation, and expansion of freehold corridors across strategic districts have broadened the participation base.

    Al Msaddi noted that UAE authorities’ commitment to safety and security sends a powerful message to investors globally. “It’s a sale which says so much about the UAE as a whole, and in this case, in particular, about Dubai as one of the world’s leading destinations for wealthy real estate investors,” he added.

    The market’s momentum is supported by disciplined supply pipelines and phased project launches that continue to reinforce pricing stability across key communities. More than 70 per cent of current transactions are driven by end-users rather than speculation, with a globally diversified buyer base providing additional market stability.

    This transaction reinforces Dubai’s position as a safe-haven real estate market, demonstrating that high-value property activity continues despite external pressures, with investors maintaining confidence in the emirate’s long-term prospects and governance framework.

  • Dubai Records Dh422 Million Apartment Sale, Third Highest Ever

    Dubai Records Dh422 Million Apartment Sale, Third Highest Ever

    The luxury residential unit, located within the Aman Residences Dubai development by H&H Development, spans approximately 31,200 square feet (around 2,898 square metres) and includes six bedrooms and eight parking spaces, according to figures released by Dubai Land Department on Thursday.

    At an average price of roughly Dh13,525 per square foot, the transaction underscores sustained investor demand in Dubai’s ultra-prime property segment, even as heightened geopolitical tensions affect the broader region.

    The Dh422 million deal ranks behind only two other apartment sales in Dubai’s history. The emirate’s most expensive apartment sale was registered in 2025, when a unit at Bugatti Residences by Binghatti sold for Dh550 million. The second-most expensive transaction took place in 2023 at Como Residences, developed by Nakheel, where a unit changed hands for Dh500 million.

    The sale comes as Dubai’s property market recorded 16,959 transactions valued at AED60.60 billion in February 2026, with off-plan sales comprising 62% of total activity. The market’s performance reflects broader confidence in Dubai’s real estate fundamentals, supported by population growth that has recently surpassed four million residents.

    Aman Residences Dubai is positioned within Jumeirah 2, one of the emirate’s established prime residential locations. The development caters to ultra-high-net-worth buyers seeking branded residences with premium amenities and services.

    The latest sale further underlines continued demand for high-end property in Dubai’s prime locations, reinforcing the emirate’s status as a leading destination for international real estate investment despite external market pressures.

    Dubai’s ultra-prime segment has consistently attracted buyers seeking stability, residency options including the Golden Visa programme, and exposure to one of the region’s most liquid property markets. The resilience demonstrated by this transaction suggests that investor confidence in Dubai’s long-term fundamentals remains strong, even as UAE property sales reached Dh17.2 billion in the first two months of 2026—a 118% increase year-on-year.

  • Emaar Confirms Normal Operations as Sales Double in Early 2026

    Emaar Confirms Normal Operations as Sales Double in Early 2026

    Dubai’s largest property developer assured investors and residents that comprehensive business continuity planning and coordination with relevant authorities ensure uninterrupted operations across all its assets.

    The statement, posted on the Dubai Financial Market where Emaar is listed, comes as the company reported exceptional momentum entering 2026 following record-breaking 2025 results.

    “With diversified income streams, strong liquidity, and disciplined cost management, Emaar remains well-positioned to sustain growth and contribute to the continued strength and resilience of Dubai’s capital markets,” the company stated.

    Record 2025 Performance Sets Foundation

    Emaar achieved its highest-ever property sales of AED80.4 billion ($21.9 billion) in 2025, alongside record revenue of AED49.6 billion and net profit before tax of AED25.7 billion. The company’s revenue backlog reached AED155 billion as of December 31, 2025, providing strong visibility over future earnings and cash flows.

    Recurring income streams across malls, hospitality, leisure, entertainment and commercial leasing accounted for 32% of total EBITDA, reflecting the strength of Emaar’s diversified and resilient operating model.

    “Emaar’s performance reflects the strength of Dubai’s economic vision and the confidence investors place in its stability and long-term prospects,” said Mohamed Alabbar, Founder of Emaar. “The city continues to demonstrate resilience, supported by effective leadership, sound regulation and a dynamic business environment.”

    Strong 2026 Start Signals Sustained Demand

    The developer’s UAE property sales reached AED17.2 billion in the first two months of 2026, compared to AED7.9 billion during the same period in 2025, representing a 118% year-on-year increase. This performance aligns with broader market trends showing sustained transaction volumes across Dubai’s property sector.

    Supported by strong cash generation and consistent performance, Emaar’s Board of Directors recommended maintaining dividends at 100% of share capital for 2025, reinforcing the company’s commitment to delivering sustainable value to shareholders.

    Strategic Position for Long-Term Growth

    Emaar’s strong balance sheet includes a substantial land bank of approximately 618 million square feet, positioning the company to navigate evolving regional developments while maintaining disciplined expansion. The developer emphasized that Dubai’s clear regulatory environment, diversified economy and proactive governance continue to reinforce investor confidence.

    The company’s performance comes as Dubai’s real estate market transitions toward more structured capital allocation, with major developers expanding their portfolios to meet growing demand driven by population growth exceeding four million residents.

    Emaar’s operational continuity and financial strength underscore the resilience of Dubai’s real estate sector, which recorded nearly Dh900 billion in transactions during 2025, reinforcing the emirate’s position as a leading global property investment destination.

  • Emaar Confirms Normal Operations as Sales Double in Early 2026

    Emaar Confirms Normal Operations as Sales Double in Early 2026

    Emaar Properties issued a statement to the Dubai Financial Market on Wednesday confirming business continuity across its entire portfolio as the master developer recorded exceptional sales growth in early 2026.

    “All Emaar communities, malls, hospitality assets, and development projects continue to operate normally, supported by comprehensive business continuity planning and close coordination with relevant authorities,” the company stated.

    The announcement comes as regional military conflict involving the US, Israel, and Iran has affected the Gulf since Saturday, with Iran targeting the region with missiles and drones.

    Mohamed Alabbar, founder of Emaar, emphasized Dubai’s stability:

    “The city continues to demonstrate resilience, supported by effective leadership, sound regulation, and a dynamic business environment. Our focus remains on disciplined execution, operational excellence, and delivering sustainable value for our shareholders and customers.”

    Emaar owns and operates landmark assets including Dubai Mall, Burj Khalifa, Dubai Hills Estate, and Dubai Creek Harbour.

    Record Sales Momentum Continues

    The UAE’s largest developer reported Dh17.2 billion in property sales during January and February 2026, compared to Dh7.9 billion in the same period of 2025—representing a 118% year-on-year increase.

    This performance follows Emaar’s record-breaking 2025 results, which included property sales of Dh80.4 billion, revenue of Dh49.6 billion, and net profit before tax of Dh25.7 billion—the strongest results in company history.

    The company’s revenue backlog stood at Dh155 billion as of December 31, 2025. Recurring income streams from malls, hospitality, leisure, entertainment, and commercial leasing accounted for 32% of total EBITDA.

    “Emaar’s performance reflects the strength of Dubai’s economic vision and the confidence investors place in its stability and long-term prospects,” Alabbar added.

    Market Context

    Emaar’s performance aligns with broader momentum across Dubai’s property sector, which recorded Dh60.60 billion in transactions during February 2026—an 18.14% increase year-on-year.

    The developer reaffirmed its commitment to disciplined growth: “With diversified income streams, strong liquidity, and disciplined cost management, Emaar remains well-positioned to sustain growth and contribute to the continued strength and resilience of Dubai’s capital markets.”

    The statement underscores investor confidence in Dubai’s regulatory framework and economic stability, even as geopolitical developments affect the wider region.

  • Wasl Group Plans to Double Affordable Housing Portfolio by 2031

    Wasl Group Plans to Double Affordable Housing Portfolio by 2031

    Wasl Group currently manages one of Dubai’s largest affordable housing portfolios, comprising approximately 45,000 residential units across the emirate. These communities accommodate nearly 180,000 residents, over 90% of whom are families, positioning Wasl as a central player in supporting stable, community-driven living.

    The expansion plan follows a Memorandum of Understanding signed in May 2025 with the Roads and Transport Authority and Dubai Municipality. The coordinated effort will span a total planned area of 1.46 million square metres, with delivery phased over multiple stages to ensure infrastructure readiness and long-term community viability.

    Wasl’s current developments include Wasl Village in Al Qusais, which comprises about 6,200 residential units ranging from studios to three-bedroom apartments, and Wasl Green Park, offering around 2,527 units set within landscaped surroundings. Both projects exemplify the integration of affordability with quality urban living standards.

    The initiative directly supports the Dubai 2040 Urban Master Plan, which calls for a balanced housing ecosystem encompassing luxury, mid-income, and affordable segments. In August 2025, Dubai’s population crossed 4 million, with nearly 567 new residents settling in the emirate daily.

    The programme additionally advances the Dubai Economic Agenda D33, supporting workforce stability and economic productivity by diversifying housing supply amid the city’s rapidly growing population. With property market momentum continuing into 2026, the focus on affordable housing addresses a critical segment of market demand.

    Wasl’s developments are designed around connectivity, community infrastructure, greenery, and access to premium amenities, reflecting a commitment that quality living should be accessible across all income levels. The phased delivery approach aims to ensure infrastructure readiness and sustainable community development as the emirate’s residential market evolves.

  • Dubai Real Estate Sales Surge 18% to $16.5 Billion in February 2026

    Dubai Real Estate Sales Surge 18% to $16.5 Billion in February 2026

    Dubai’s real estate sector maintained exceptional momentum through February 2026, with transaction values climbing 18.14% year-on-year despite evolving market dynamics across property segments. According to Dubai Land Department data, total sales reached 16,959 deals generating AED60.60 billion ($16.5 billion), representing a 5% increase in volume compared to February 2025.

    Off-plan properties dominated market activity, accounting for 10,526 transactions or approximately 62% of total sales, while ready properties recorded 6,437 deals representing 38% of the market.

    Apartments Drive Residential Growth

    The apartment segment emerged as the primary growth driver, with transactions rising from 11,385 sales worth AED21.7 billion in February 2025 to 12,820 deals totaling AED26.6 billion in February 2026. The villa market experienced a sharp contraction, with transactions declining from 3,966 deals valued at AED19.7 billion to just 1,563 sales worth AED6.4 billion year-on-year.

    Commercial property demonstrated exceptional performance, with transactions surging from 443 sales valued at AED1.2 billion to 717 deals totaling AED9.54 billion—a near eight-fold increase in value.

    “Hitting over AED60 billion in sales volume solidifies Dubai’s position as one of the globe’s most resilient and desirable real estate hubs. This surge is driven by a balanced blend of end-user demand and enduring investor confidence,” said Tara Khan, Sales Director of Kelt and Co Realty.

    Khan noted that the market has reached a mature phase with steady price growth, strategically managed supply, and buyer involvement across both emerging and established communities.

    Transaction Activity Concentrated in Key Districts

    By volume, Jumeirah Village Circle led with 1,146 transactions, reaffirming its status as one of Dubai’s most active residential hubs. Al Yelayiss 1 followed with 916 deals, Madinat Al Mataar recorded 828 transactions, while Dubai Land Residence Complex registered 750 sales and Business Bay closed the top five with 733 deals.

    In value terms, Al Yelayiss 1 dominated with AED5.38 billion in sales, followed by Al Yelayiss 5 at AED2.41 billion and Me’Aisem Second at AED2.27 billion. Business Bay generated AED2.21 billion, while Palm Jumeirah reached AED1.89 billion, driven by continued demand for ultra-prime waterfront properties.

    Ultra-Luxury Transactions Define Upper Tier

    Among apartments, The Alba Residences by Omniyat topped the list with a AED225.97 million sale, followed by Peninsula Dubai Residences – Tower 2 at AED210 million. Solara Tower Dubai recorded a transaction worth AED113.66 million, while Passo by Beyond achieved AED98 million and Como Residences closed at AED63.5 million.

    In the villa segment, EOME at Palm Jumeirah led with a sale valued at AED115 million. Zaya Zuha Island at The World Islands featured multiple transactions at AED68.58 million, while Amali Island at The World Islands recorded a sale of AED68.4 million.

    The February performance follows Dubai’s landmark 2025, when the emirate’s population exceeded four million residents as property transactions approached Dh900 billion. The market has transitioned toward structured capital allocation, with strategic capital now accounting for approximately 40% of transactions.

    Market fundamentals remain supported by expanding business activity and tight inventory, particularly in the office sector where limited Grade A supply continues to drive investment activity across commercial segments.

  • DMCC Unveils 600-Metre Tower for Uptown District Phase 3

    DMCC Unveils 600-Metre Tower for Uptown District Phase 3

    The proposed megatall tower represents the latest expansion of DMCC’s strategic development in Dubai’s southern corridor, aligning with the emirate’s broader infrastructure transformation centered on Al Maktoum International Airport.

    Phase 1 of the Uptown District delivered the 340-metre Uptown Tower and central plaza. Phase 2, comprising two Grade A office towers and two residential towers, is under construction with completion scheduled for late 2027 and early 2028.

    Strategic positioning around future aviation hub

    Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer of DMCC, emphasized that the development responds to tangible market demand rather than speculative construction.

    “We build to meet the clear, growing requirements of a global trade community that is outgrowing its current footprint. The decision to develop the world’s largest airport in the southern corridor has broadened Dubai’s economic centre of gravity. Uptown District is the strategic anchor of this corridor.”

    The reference to structured capital allocation aligns with broader market trends as institutional investors prioritize strategic positioning over short-term gains.

    According to DMCC, approximately 50% of the tower’s space will be allocated to Grade A offices designed for multinational companies consolidating regional operations. The development will also include a luxury hotel operated by an international hospitality brand and high-end residential units.

    Smart infrastructure and connectivity

    The tower will incorporate smart-building systems and sustainability features, with direct integration to the Dubai Metro via a climate-controlled link bridge. Road infrastructure upgrades, including flyover access to Sheikh Zayed Road, are planned to support increased traffic capacity.

    DMCC stated the project targets continued demand from high-net-worth individuals relocating to Dubai, a trend reflected in recent market data showing sustained buyer interest across premium segments.

    The tower will feature a public viewing deck intended to attract visitors and serve as a vertical landmark for the district.

    Financial backing and market context

    DMCC confirmed that several major banks have expressed interest in partnering on the development, though specific financial details and timelines were not disclosed.

    Bin Sulayem described the development as part of creating “a sophisticated ecosystem where commerce and lifestyle are inextricably linked,” positioning the megatall tower as the district’s vertical anchor.

    The announcement comes as Dubai’s commercial property sector recorded Dh17.1 billion in sales during early 2026, with limited Grade A office supply in core business districts driving investors and corporates to secure prime space amid occupancy rates exceeding 95%.

    The planned expansion of Al Maktoum International Airport, set to accommodate 260 million passengers and 12 million tonnes of cargo annually, is reshaping development patterns across Dubai’s southern districts and reinforcing the strategic value of projects like Uptown District.

  • Dubai Real Estate Shifts from Speculation to Structured Capital Allocation

    Dubai Real Estate Shifts from Speculation to Structured Capital Allocation

    Strategic capital now drives approximately 40 percent of Dubai’s real estate market, according to a new report by VVS Estate, marking a fundamental shift from the momentum-based trading that characterized the 2014 cycle. This evolution reflects deeper regulatory oversight, improved transparency, and increasingly disciplined capital participation.

    “While property cycles are often described in terms of volatility and momentum, Dubai’s current evolution is structural in nature, shaped by regulatory depth, improved transparency and increasingly disciplined capital participation,” said Valentina Rusu, Founder of VVS Estate.

    High-Value Transactions Signal Long-Term Investment Behavior

    The proportion of residential transactions priced above Dh5 million has risen to 9 percent, reflecting sustained appetite for higher-value residential assets, according to Savills Middle East’s Dubai Residential Market Report 2025. Growth at the top end of the market typically indicates strategic capital deployment rather than short-term speculative activity.

    Off-plan transactions, widely viewed as a proxy for strategic capital allocation, account for over 60 percent of total residential transaction value, equivalent to approximately Dh223 billion, according to JLL data. Taken together with Savills’ pricing analysis, the figures point to a market increasingly shaped by deliberate allocation decisions.

    Property Finder insights show that premium and branded residences now represent a growing share of overall transactions. With a higher proportion of deals occurring above Dh2,500 per square foot, citywide averages have naturally moved higher.

    “This is not inflation. It reflects a segmentation shift. Comparing today’s market directly with 2014 without adjusting for product mix oversimplifies the analysis,” Rusu explained.

    Prices Surpass 2014 Peak Amid Structural Improvements

    Dubai reached its previous market peak in September 2014. A decade later, prices have not only recovered but surpassed those levels. According to the Dynamic Price Index published by Property Monitor, average apartment prices reached approximately Dh1,484 per square foot in early 2025, more than 20 percent above the 2014 high, before exceeding Dh1,600 per square foot by mid-2025.

    However, VVS Estate emphasizes that price recovery alone does not define market quality. “In 2014, growth was largely momentum-driven,” Rusu said. “Today, performance is supported by regulatory reinforcement, escrow discipline, standardized registration and improved execution transparency. The difference is structural.”

    Regulatory Frameworks Reduce Execution Risk

    One of the most consequential changes since the previous cycle has been the strengthening of regulatory frameworks under the oversight of the Dubai Land Department. Contract registration now operates within defined timelines through centralized systems, while escrow accounts follow milestone-based release mechanisms aligned with construction progress.

    “This regulatory depth has materially reshaped Dubai’s risk profile and increased its appeal to institutional and long-horizon capital,” Rusu noted.

    Investor behavior increasingly reflects disciplined capital allocation, with buyers focusing on net yields after service charges, resale comparables, supply-pipeline concentration, and developer delivery consistency. “Speculative markets depend on entry enthusiasm,” Rusu said. “Structured markets depend on exit depth.”

    The most significant change underway is behavioral rather than price-driven. Participation is shifting from excitement-led entry to allocation-driven decision-making, where capital is deployed strategically rather than reactively. Investors are increasingly viewing Dubai as a structured capital environment, defined by regulatory clarity, liquidity depth, and global positioning.

    The emirate’s property market continues to demonstrate strong fundamentals, with transactions nearing Dh900 billion as the population exceeded four million residents. Across the UAE, real estate growth remains robust, supported by infrastructure investment and economic diversification.

  • UAE Real Estate Records Strong 2025 Growth as Abu Dhabi Leads

    UAE Real Estate Records Strong 2025 Growth as Abu Dhabi Leads

    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.

  • GCC Real Estate Markets to Sustain Growth Momentum in H1 2026

    GCC Real Estate Markets to Sustain Growth Momentum in H1 2026

    Kuwait-based investment firm Markaz has released its Real Estate Outlook for H1 2026, forecasting sustained growth across GCC property markets despite evolving macroeconomic dynamics. The report identifies higher oil production, non-oil sector expansion, continued government infrastructure spending, and policy rate cuts as key drivers supporting borrowing and investment activity across residential, commercial, and industrial segments.

    UAE Market Expected to Peak in First Half

    The UAE real estate sector demonstrated exceptional performance through the first three quarters of 2025. In Dubai, transaction values surged 28.3 percent year-on-year to AED554.1 billion, while Abu Dhabi recorded AED58 billion in total sales—a remarkable 75.8 percent annual increase. Transaction volumes in the capital also climbed 42.3 percent to 15,800 deals.

    Dubai continues to offer compelling investment returns, with rental yields standing at 7.47 percent as of June 2025, significantly outperforming major global markets including Singapore, New York, and London. This aligns with recent data showing that long-term UAE renters are turning homeowners amid competitive pricing and flexible payment plans.

    While acknowledging concerns about market sustainability given three consecutive years of exceptional performance, Markaz emphasized that strong fundamentals reduce the likelihood of a sharp correction. The firm forecasts the UAE market could peak in H1 2026, characterized by steady growth in both prices and rental rates across Dubai and Abu Dhabi.

    The outlook reflects broader shifts in buyer behavior across the Gulf, with investors increasingly prioritizing developer credibility, rental yields, and long-term stability over speculative gains.

    Saudi Arabia Maintains Accelerating Phase

    Saudi Arabia’s real estate sector remained in an accelerating phase through H2 2025, propelled by robust residential activity and constrained office market conditions. Residential transactions increased 17.9 percent quarter-on-quarter in Q3 2025, with Riyadh and Jeddah leading price appreciation.

    The Kingdom’s office segment faces extreme supply constraints, with Riyadh vacancy rates near zero, supporting prime rent growth of 7.3 percent year-on-year. Demand stems from the Regional Headquarters Program and expanding healthcare and technology sectors.

    Despite a fiscal deficit projected at 3.7 percent of GDP for both 2025 and 2026, increased capital expenditure under Vision 2030 continues supporting construction activity. Saudi Arabia’s population reached 35.3 million by mid-2024, up 4.7 percent annually, with non-Saudis comprising 44.4 percent—a demographic dynamic that underpins sustained housing demand.

    Kuwait Shows Stable Growth Trajectory

    Kuwait’s real estate sector maintained steady growth through the first nine months of 2025, supported by rising land prices and rental rates. Total real estate sales increased 26.9 percent year-on-year to KWD3.043 billion, with transaction volumes up 27.8 percent to 4,247 deals.

    The investment segment led growth with a 60 percent annual increase in sales, while residential and commercial segments rose 8 percent and 17.4 percent respectively.

    Kuwait’s real GDP is projected to expand 3.9 percent in 2026, driven by higher oil production, improved non-oil activity, stronger project awards, and anticipated interest rate reductions. Based on a Markaz Real Estate Macro Index score of 3.45 out of 5.0, the firm expects Kuwait’s market to remain stable in H1 2026, with prospects for further increases in land prices and rental rates.

    The regional outlook comes as governments continue enhancing investor protection frameworks. Abu Dhabi recently launched mandatory digital registration for off-plan property interests through its Madhmoun platform, with funds secured in government-managed escrow accounts.

    Markaz emphasized that real estate will remain a key contributor to the GCC’s economic development in 2026, offering attractive opportunities for investors across all major property segments as the region’s markets continue to mature and evolve.