The UAE Real Estate Market in The First Half of 2025: Analytics, Results, Forecasts

The UAE real estate market continues to develop — housing prices in Dubai rose by 3.7% in just one quarter. This article summarises the key figures, trends and market locations for the first half of 2025.

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In the first half of 2025, the real estate market in the United Arab Emirates showed growth. Below are the key indicators of activity.

In the first six months, real estate transactions in Dubai totalled $117.3 billion, which is 25% more than a year earlier.

The number of transactions also increased: 125,538 transactions compared to 99,947 — a 26% increase compared to 2024.

This indicates high buyer activity and confidence in the market, despite global economic turbulence. At the same time, it indicates an increase in the average cheque — investors are willing to invest more in real estate.

Interest in new buildings remains consistently high thanks to favourable instalment terms, but the secondary market is also strengthening. Over the year, its share grew from 39.5% to 43.5%, which indicates the maturity and expansion of the market.

As of June 2025, the structure of transactions was as follows:

Most home buyers in Dubai and the UAE are foreigners. Their share of the real estate market is indicated in percentages.

The average price for off-plan properties increased steadily over the first five months, with a slight correction in June. The secondary market showed more volatility: after peaking in spring, it cooled off slightly in May, but by mid-summer, prices are returning to earlier levels.

Prices are in millions of Arab Emirates Dirham (AED).

The United Arab Emirates remains a safe haven for investments.

Against a backdrop of geopolitical instability, inflation in other countries and rising tax burdens in Europe, the US and Asia, the UAE remains a jurisdiction with a stable currency and a growing economy: in 2024, GDP grew by 3.9%.

This makes the country increasingly attractive for real estate investment. Key market trends for the first half of 2025 in the UAE:

The real estate market is growing in several emirates at once:

56.5% of transactions are in the primary market — buyers still prefer UAE off-plan properties with convenient 0% payment plans, especially at the start of sales.

Investors' priorities are waterfront locations, branded complexes with a high level of service and management.

The share of transactions in the secondary market grew from 39.5% to 43.5% over the year. This confirms its strengthening and development: the market is becoming more mature, with more high-quality offers appearing.

The Dubai real estate market attracted 94,717 investors, 59,075 of whom were new (according to data from the Dubai Land Department). This is a 22% increase compared to last year.

Interestingly, 45% of new buyers are UAE residents. This indicates stable domestic demand and that more and more people who live and work in the UAE are considering real estate as a way to preserve capital or generate passive income.

At the same time, the volume of investments by new investors has grown by 40%, which further underscores their high interest and confidence in the market.

Dubai Hills Estate

One of the greenest areas of the city with a large park. It is ideal for renting to families because the location has everything you need for life with children.

A location with a 9-hole golf course and a racecourse. There is a free economic zone in the area, where you can start a company with minimal tax burden.

A circular area with a school, park and shops. An inexpensive and popular location among tenants, preferred by those who have recently moved to Dubai. However, a lot of new housing will be completed here in the near future, so rents may fall.

An area similar to Dubai Hills, but by the water. The location is being developed by Emaar Properties — everything is beautiful and in the same style.

A business district with many offices. There is particularly high demand for rentals from expats and those who work in this location. The district is large, and much depends on the specific location of the house. For example, rentals will be more expensive closer to the DIFC location.

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