NEWS

The Abu Dhabi Real Estate Centre reported a 34.5% increase in transaction value, reaching AED 25.3 billion across 6,896 deals in Q1 2025, up from AED 18.82 billion in Q1 2024

Ratings agency Fitch warns that surging supply—up to 210,000 new units in 2025–26—could result in a price decline of up to 15% in the latter part of the year. Scotia suggests this won’t undo the multi-year growth, but caution is advised

Dubai’s population (87% expats) reached 3.85 million, putting upward pressure on rents—which have climbed ~16% over the past year—while salaries remain flat, squeezing affordability

Property values in Dubai have climbed approximately 75% since early 2021, nearing the 2008 peak (~AED 1,750 per sq ft). Market resilience is strong, though analysts caution that increased new supply may temper future gains

Abu Dhabi’s real estate sector showed broad-based growth in early 2025—with increases in residential, office, retail, and hospitality rentals—reflecting a diversified and resilient market

Residential prices rose by 13.4% year-on-year, driven by limited supply and strong demand for ready-to-move-in units, especially in prime villa communities

In Q1 2025, 384 foreign investors from 68 nationalities invested AED 1.582 billion in Abu Dhabi real estate, underscoring growing international confidence

Saadiyat Island topped transaction values (AED 5.6 billion) with villa prices jumping 26%

Yas Island saw 10% villa price growth and AED 3.6 billion in deals

Al Reem Island had over AED 1 billion in transactions, offering strong yields

Despite some moderation in pace, residential property prices in Dubai are still projected to increase steadily throughout the year. Strong demand for villas and apartments, coupled with limited inventory, supports continued growth

May 2025 saw Dubai’s real estate transactions hit AED 66.8 billion (≈ $18.2 billion), up 44% year-over-year. A surge in new regulations and interest in real estate tokenization is opening the market to more investors and reshaping ownership models