Today’s markets analysis on behalf of Ray Verma Luxury Broker at Eden Realty UAE
30th January 2025
The UAE’s real estate sector has demonstrated remarkable momentum in early 2025, building upon the strong performance witnessed throughout 2024. Dubai’s property market particularly stood out, achieving transactions worth $207 billion in 2024, with residential real estate volume surging by 47%. As we move further into 2025, the Dubai market could see a moderation in rental increases, primarily due to the expected record supply entering the market.
The development landscape continues to evolve with significant announcements from major players. DAMAC Properties has commenced 2025 with the launch of its Riverside Views project, while DHG Properties has unveiled a project in Meydan that expands the development pipeline to $272 million. Other notable projects include the Serenia District by Palma Holding in Jumeirah Lakes Towers and The Chedi Private Residences in Barsha Heights. These launches reflect the ongoing confidence in Dubai’s real estate sector despite predictions of market stabilization.
Abu Dhabi’s real estate market has shown exceptional growth, with the Abu Dhabi Real Estate Centre reporting an impressive 24.2% increase in transactions, reaching $26.19 billion in 2024. The emirate has also successfully attracted substantial foreign direct investment, with FDI in the real estate sector surging by 125%. This growth underscores Abu Dhabi’s increasing appeal to international investors and developers.
Regional developments across the UAE have been equally noteworthy. In Ras Al Khaimah, Al Hamra completed their Marina Residences project, offering an attractive package that combines property ownership with visa and business license benefits. The launch of Manta Bay’s second phase on Al Marjan Island further demonstrates the expanding reach of UAE’s real estate development beyond the traditional hubs of Dubai and Abu Dhabi.
The UAE real estate sector’s growth is further supported by strategic infrastructure developments, particularly the Etihad Rail network, which is expected to drive property values up by as much as 15% in areas near its stations. This enhancement in connectivity, combined with the country’s robust economic fundamentals, continues to strengthen the UAE’s position as a leading real estate market.