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Tag: UAE property market

  • Abu Dhabi Introduces Digital Registration for Off-Plan Property Interest

    Abu Dhabi Introduces Digital Registration for Off-Plan Property Interest

    Abu Dhabi’s property sector has implemented a significant regulatory upgrade designed to strengthen transparency and safeguard investor funds in off-plan transactions.

    The Abu Dhabi Real Estate Centre (ADREC) now requires all developers launching new off-plan projects to register Expressions of Interest (EOIs) digitally through its Madhmoun platform. An EOI represents an early payment or commitment made by a buyer before a property project reaches completion.

    Under the new framework, EOI funds will be placed in a government-managed escrow account supervised by ADREC. This arrangement ensures that buyer payments are held securely and monitored before being transferred to developers, offering a higher level of financial protection than traditional manual or intermediary-based processes.

    The first project to operate under the updated system is Manchester City Yas Residences by Ohana, marking the operational rollout of the digital registration requirement.

    ADREC emphasized that the new system reduces risks associated with manual fund handling and introduces a digital refund mechanism if required. Officials stated that the changes are designed to protect investors while maintaining a clear and efficient process for developers.

    “The move is part of wider efforts to improve transparency, strengthen regulation and modernise Abu Dhabi’s real estate sector,” ADREC said in a statement.

    The initiative reinforces Abu Dhabi’s commitment to positioning itself as a secure and transparent real estate investment destination. The digital EOI system adds a layer of regulatory oversight that aligns with broader efforts across the UAE to enhance buyer confidence and market stability.

    The regulatory development comes as UAE property markets continue to attract significant investor interest, with Dubai recording over 200,000 transactions in 2025 and major developers reporting record-breaking sales figures.

    Abu Dhabi’s emphasis on modernizing its real estate infrastructure through digital solutions reflects a strategic approach to maintaining investor trust and supporting sustainable market growth in a competitive regional environment.

  • Dubai Residential Prices Rise 12.1% as Market Records 200,000 Transactions

    Dubai’s property sector concluded 2025 with landmark performance metrics, recording over 200,000 sales transactions—an 18.8% increase over 2024—as both off-plan and ready property segments outperformed previous years, according to a report by Cavendish Maxwell.

    Residential prices rose 12.1% during the year, down from 16.5% growth in 2024, while rental increases moderated to 11-12% by year-end compared to 13-15% earlier in the year, signaling a gradual market stabilization.

    Off-Plan Dominance Intensifies Market Concentration

    Off-plan transactions represented 72.9% of total real estate activity in Dubai, up from 69.3% in 2024, with transaction volumes reaching 146,400 units—a 25% year-on-year increase. This surge was driven by sustained developer confidence and robust investor appetite for future developments.

    Ready property sales recorded more modest but steady growth, reaching 54,400 transactions, up 5% compared to 2024, supported by stable demand from end-users and investors seeking immediate occupancy opportunities.

    The market’s increasing reliance on off-plan sales, however, creates concentration risks, making it potentially vulnerable to shifts in launch momentum and buyer sentiment.

    Supply Dynamics Show Persistent Delivery Gaps

    Approximately 40,400 residential units were completed in 2025, significantly below the initial projection of 82,600 units, resulting in a materialization rate of just 48.9%. Despite falling short of targets, actual completions were 16.4% higher than the 34,700 units delivered in 2024.

    Looking ahead, around 110,500 residential units are projected for delivery in 2026, though historical completion patterns suggest actual deliveries may range between 33,000 and 50,000 units, with some projects likely spilling into 2027.

    Apartments are expected to dominate upcoming completions, representing 84.3% of projected units through 2028. Key locations including Jumeirah Village Circle, Dubai South, Business Bay, Dubai Residence Complex and DAMAC Lagoons are forecast to contribute 30.7% of all projected deliveries during this period.

    Luxury Segment Surges 47% in Transaction Volumes

    Dubai’s luxury real estate segment recorded approximately 2,500 transactions in 2025, marking a 47.1% increase compared to the previous year. Off-plan sales led growth with a 52.6% year-on-year increase, accounting for 70.5% of all luxury transactions.

    The ultra-luxury segment exhibited robust performance with 302 transactions totaling Dh27.9 billion, representing increases of 31.9% in volume and 53.7% in value compared to 2024, highlighting growing preference among high-net-worth individuals for Dubai as both a residential and investment destination.

    Economic Fundamentals Remain Supportive

    Despite emerging supply pressures, broader macroeconomic fundamentals continue supporting the market. UAE GDP growth is projected at 5.2% in 2026, with Dubai expected to expand by 4.5%, supported by ongoing infrastructure investment, population growth, and sustained tourism momentum.

    Tourism is projected to maintain momentum with visitor volumes expected to surpass prior-year levels, while business activity indicators remain positive, providing continued support across housing, retail and commercial sectors.

    Market Enters Transition Phase

    Looking ahead, Dubai’s real estate market is expected to remain relatively stable in 2026, though entering a critical transition phase where supply pressures, moderating growth trajectories and potential external headwinds require heightened vigilance.

    While a sharp correction appears unlikely given Dubai’s solid macroeconomic foundation, diversified economy and sustained population growth, stakeholders should prepare for a more balanced environment characterized by moderate appreciation and heightened selectivity.

    The market’s performance contrasts with record results posted by developers in 2025, suggesting continued confidence in long-term fundamentals despite near-term moderation signals.

  • Emaar Properties Reports Record 2025 Results with Dh80.4 Billion Sales

    Emaar Properties delivered its strongest financial performance to date in 2025, with growth accelerating across all business segments including property development, retail, hospitality, and international operations.

    The Dubai-based developer reported a 16% year-on-year increase in property sales to Dh80.4 billion ($21.9 billion), while total revenue climbed 40% to Dh49.6 billion ($13.5 billion). Net profit before tax rose 36% to Dh25.7 billion ($7 billion), and EBITDA reached Dh25.6 billion ($7 billion), marking a 33% increase from 2024.

    Revenue backlog surged 39% to Dh155 billion ($42.1 billion), providing substantial visibility on future earnings and demonstrating sustained market confidence.

    “Our 2025 results were shaped by a business environment that enables ambition and rewards long-term thinking. The UAE Government and the city of Dubai have created a framework built on stability, clear regulation, and openness to global investment, allowing companies like Emaar to plan with confidence, scale responsibly, and focus on execution,” said Mohamed Alabbar, Emaar founder.

    Domestic Development Drives Growth

    Emaar Development PJSC recorded Dh71.1 billion ($19.4 billion) in UAE property sales, representing a 9% increase from 2024. Revenue from domestic projects reached Dh36.4 billion ($9.9 billion), while net profit before tax grew an impressive 52% to Dh15.5 billion ($4.2 billion).

    The company launched 48 new residential projects throughout the year, including high-profile developments such as Grand Polo Club and Resort, The Valley, and Bristol at Emaar Beachfront. The UAE backlog stood at Dh134.3 billion ($36.6 billion), reflecting strong pre-sales momentum.

    These results align with broader market trends, as Dubai’s property sector continues its upward trajectory with record-breaking transaction volumes.

    International Expansion Accelerates

    International property sales experienced exceptional growth, surging 124% to Dh9.3 billion ($2.5 billion), with revenue of Dh2.6 billion ($0.7 billion) generated across operations in Egypt and India. This expansion demonstrates Emaar’s successful geographic diversification strategy beyond its home market.

    Recurring Revenue Streams Strengthen

    Emaar’s malls and retail leasing revenue increased 13% to Dh6.3 billion ($1.7 billion), maintaining an impressive 98% occupancy rate across its portfolio. The hospitality, leisure, and entertainment segment recorded revenue of Dh4.2 billion ($1.1 billion), up 12%, supported by higher tourism inflows and the addition of three new hotels.

    Combined recurring revenue from malls, hotels, and commercial leasing reached Dh10.5 billion ($2.8 billion), reflecting a 13% increase and strengthening the company’s diversified income base.

    The record performance comes as Dubai’s property market demonstrates exceptional momentum, with investor confidence remaining robust amid favorable regulatory frameworks and economic stability.

    Emaar’s 2025 results reinforce the company’s market leadership position and highlight the sustained appeal of Dubai real estate as a destination for both end-users and investors seeking long-term value in a transparent, well-regulated environment.