06 October 2025

UAE Real Estate Sector to Reach $759 Billion by 2029 Amid Dubai and Abu Dhabi Property Boom

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The UAE real estate market is on an extraordinary growth trajectory, projected to hit $759 billion by 2029, driven by record-breaking sales in Dubai, rising prices in Abu Dhabi, and sustained demand for luxury and off-plan properties.

A Record-Breaking 2025

According to international analysts, 2025 is shaping up to be the UAE’s strongest real estate year ever, solidifying the sector’s role as a key engine of economic expansion.

Growth is being powered by:

  1. strong foreign investment inflows,

  2. an active pipeline of off-plan project launches,

  3. rental market stability, and

  4. government initiatives enhancing the UAE’s global investment appeal.

By the end of 2025, the total market value is expected to reach $693 billion, with $401.8 billion attributed to the residential segment alone.

Dubai and Abu Dhabi Lead the Surge

A report from JLL revealed that off-plan transactions dominated sales in both Dubai and Abu Dhabi during the first half of 2025.

Q2 2025 Highlights:

  1. Dubai: property sales reached AED153.7 billion ($41.9 billion) — up 44.5% year-on-year.

  2. Abu Dhabi: average sales prices increased 12.1% over the same period.

Across both emirates, more than 32,000 residential units are under construction, reflecting strong demand and market confidence.

Resilient Demand and Rental Stability

The rental market remained stable, with most tenants choosing to renew leases.

  1. Abu Dhabi recorded a 9.4% increase in lease contracts;

  2. Dubai saw an 11.5% rise in total residential leases.

Sales followed the same trend:

  1. Abu Dhabi: total transactions rose 9.1%, including a 32.6% jump in secondary sales.

  2. Dubai: overall sales climbed 22.8%, with a 17.1% increase in resale activity.

Expanding Office Market

Abu Dhabi’s office inventory grew by 78,000 sqm, reaching 4.6 million sqm, with another 66,000 sqm expected by year-end.
Dubai added 24,000 sqm, bringing its total to 9.3 million sqm, and will deliver 264,000 sqm of Grade A offices in Dubai International Financial Centre (DIFC) by 2026.

Market Forecast Through 2029

According to Statista, the UAE real estate market is projected to grow at a 2.28% annual rate, reaching $759 billion by 2029.

High-net-worth individuals continue to fuel strong demand for luxury properties, reinforcing the UAE’s reputation as a global investment hub.

Mordor Intelligence values the UAE’s real estate services market at $18.45 billion in 2025, forecasting growth to $24.75 billion by 2030 — a 6.05% compound annual growth rate (CAGR).
The expansion is driven by foreign investment, logistics demand, data center development, and premium housing projects.

The report also identified Ras Al Khaimah as the emirate with the highest expected growth rates, highlighting the diversity and scale of opportunities across the UAE.

The UAE’s property sector continues to redefine global real estate success.
With surging demand, rental growth, and an influx of capital, the Emirates stand among the world’s most attractive and stable investment destinations.

Now is the time to invest smartly.
Partner with SPI Dubai — your trusted expert in Dubai and Abu Dhabi real estate.
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