In 2025, the United Arab Emirates real estate market closed with records in every aspect, from transactions to price growth and inflow of foreign investment. Among other factors, the rapid population growth, increased migration of people with high net worth, and improved economic indicators supported the remarkable boom in the market throughout the last year.
According to reputable institutions such as Moody’s, Fitch, CBRE, Colliers, and Property Finder, the UAE is now entering 2026 in a more balanced phase where supply is rising, demand is still strong, and the market cycles become more predictable.
As per CBRE, the UAE economy recorded a GDP growth of around 4.9% in 2025, driven by strong tourism, non-oil industry growth, and foreign investment. The PMI index remained above the mark of 54 points, indicating business activity that was firmly set at a stable and healthy rate.
The high population growth in UAE has been the strongest driving element for housing demand. According to ValuStrat, the population of Dubai grew by almost 1,000 people per day in 2025. Meanwhile, Henley & Partners reported that around 10,000 high-net-worth individuals migrated to the UAE last year. This has, in turn, strengthened demand at all market levels, especially for luxury and waterfront developments.
Dubai had one of its most dynamic years:
However, ready-property sales declined by about 5% compared to the previous quarter, indicating increased price sensitivity among buyers.
While Q3 alone saw 9,400 new units delivered, Moody’s and Fitch project:
Between 2025 and 2027, 150,000 to 250,000 new residential units will enter the market. This increase in supply is likely to result in price moderation in some segments, expected to be “soft and controlled,” with the most impact on mid-range apartments.
CBRE reported:
In fact, over half of the residents of Dubai surveyed by Property Finder say they plan to buy a home within the next three years.
Reports by CBRE and JLL indicate:
The supply shortage that is forecasted to persist into 2027 firmly supports landlords in the office sector.
Abu Dhabi realized its strongest historical performance in 2025:
Office occupancy in the ADGM area has almost reached 100%. Controlled supply policies in Abu Dhabi set a path of stability for 2026.
Meanwhile, as per Colliers, more than 13,000 new units were introduced in Q3 2025 within the Northern Emirates.
The coastal development in Ras Al Khaimah, particularly around Al Marjan Island and the new hospitality and tourism mega projects under way, played a key role in attracting international demand.
Cavendish Maxwell reports,
With the limited supply, the luxury segment is likely to sustain its strength in 2026.
Experts generally believe that:
As analysts note:
“The new phase of the UAE real estate market will be defined not by emotional record-breaking but by balance, resilience, and purposeful growth.”
In 2025, the UAE real estate market, driven by rapid population growth, investor migration, and robust economic performance, enjoyed one of the busiest years on record, setting new highs in the number of deals. This environment instituted a huge interest in Dubai property investments due to strong demand and lots of new, alluring projects. Nevertheless, this significant increase in supply over the next years will pave the way for the market towards greater balance and sluggish price acceleration. According to analysts, despite such changes, the UAE would still be one of the most stable and attractive destinations for real estate investment in the region throughout 2026.
Source: https://www.khaleejtimes.com
