UAE Real Estate Surge: A Deep Dive into Q1 2025 Trends

The UAE’s real estate market has kicked off 2025 with impressive momentum, as recent data reveals that total transactions across five emirates surpassed Dh239 billion in the first quarter alone. This remarkable growth is attributed to a combination of robust investor confidence, flexible regulatory measures, and a thriving project pipeline.

Transaction Highlights

In the first three months of 2025, the UAE recorded over 94,719 sales, purchase, and mortgage deals, spanning Abu Dhabi, Dubai, Sharjah, Ajman, and Ras Al Khaimah. Such activity signifies a bustling start for the country’s property sector. Notably, a WAM report highlighted the impressive scale of these transactions, indicating strong market resilience.

Performance by Emirate

Abu Dhabi

Abu Dhabi showed robust performance with a total of Dh25.3 billion in real estate transactions, reflecting a 34.5% increase compared to the same period last year. The emirate recorded 3,819 sale deals valued at Dh15.51 billion, representing a 26.7% rise. Mortgage transactions also surged, totaling Dh9.8 billion thanks to 3,077 deals—a staggering 49% increase. Such numbers underline the optimism in Abu Dhabi’s real estate landscape.

Dubai

Dubai stood out as a beacon in the UAE’s real estate landscape, commanding the largest share of transactions at Dh193 billion. The emirate witnessed 58,039 transactions, which translates to a 16.2% growth in value and a 31.5% uptick in volume since 2024. The Dubai Land Department reported Dh142 billion in sales from 45,077 deals, marking a 30% increase in value year-on-year. Additionally, mortgage activity surged to Dh41 billion from 10,949 transactions, a 27% rise compared to the previous year.

Sharjah

The Sharjah market is also enjoying favorable conditions, recording Dh13.2 billion in property transactions across 24,597 deals, a considerable 31.9% year-on-year increase. The growing interest in Sharjah is indicative of its rising appeal, particularly among first-time buyers and investors looking for more affordable options.

Ajman

Ajman reported a total of Dh5.55 billion in real estate transactions, up 29% from last year. Within this total, Dh3.69 billion originated from 3,132 sales and purchases, while Dh905 million stemmed from 498 mortgage transactions, depicting a vibrant real estate climate in the emirate.

Ras Al Khaimah

Ras Al Khaimah is experiencing a burgeoning housing market, with off-plan sales exceeding Dh2.4 billion from over 1,300 transactions. This growth, as highlighted in a CBRE report, speaks volumes about the continued demand for residential properties in the northern emirate, making it a focal point for potential investors.

Sector Insights

Talal Al Dhiyebi, the Group CEO of Aldar Properties, shared insights on the driving factors behind this real estate boom. He noted that the UAE’s broader economic and cultural advancements are solidifying its status as one of the world’s most appealing destinations for living, working, and investing. Aldar itself reported a remarkable Dh8.9 billion in Q1 sales, reflecting a 42% increase compared to the same period last year, with occupancy rates soaring above 95%.

Conclusion

Despite the competitive landscape, the UAE’s real estate sector is thriving, buoyed by a perfect storm of favorable economic conditions and regulatory frameworks. From Abu Dhabi to Ras Al Khaimah, each emirate is showcasing unique opportunities for investors, illustrating the dynamic nature of the UAE’s real estate market in 2025. Whether you’re a seasoned investor or a first-time buyer, the current landscape presents a wealth of opportunities to explore.