UAE Real Estate Market Q2 2025
The UAE’s real estate sector continued to show remarkable momentum in Q2 2025, driven by robust demand, strategic government policies, and investor confidence.
According to the latest Colliers Real Estate Report, Abu Dhabi and Dubai remain at the forefront of expansion, while Al Ain and the Northern Emirates also recorded steady improvements across sales, rentals, and new developments.
Abu Dhabi: Strongest Performance Since 2009
Abu Dhabi’s residential and office markets are performing at their highest levels since 2009.
New Supply: Around 3,250 residential units were delivered in Q2 2025, with an additional 2,150 units expected by year-end across Yas Island, Saadiyat Island, Masdar City, and Jubail Island.
Key Projects: New announcements included Bulgari Resort & Mansions and Brabus Island by Reportage, while the National Housing program approved 14 housing developments that will add 26,000 homes in the next 5–10 years.
Rental Growth: Apartment rents surged 13% annually and 6% quarterly, while villa rentals rose 4–15% annually.
Sales Transactions: Nearly 2,000 sales deals were recorded — a 46% increase from Q1 2025. Ready homes drove 70% of transactions, while off-plan sales surged 53% QoQ.
Apartment prices climbed 8% quarterly and 25% annually, with luxury areas witnessing growth above 35%.
Dubai: Record-Breaking Growth and Innovation
Dubai’s market remained the powerhouse of UAE real estate, with unprecedented levels of supply and project launches.
Residential Supply: Over 12,500 units were delivered in Q2, including 3,900 villas — a 40% increase from Q1.
Pipeline: More than 60,000 new units were announced across 200+ projects, highlighting strong developer activity.
Rental Market: Average rents rose modestly (1% for apartments, 2% for villas).
Demand shifted towards luxury districts like JVC and Arjan, while a rising trend of tenants moving into homeownership reduced lease renewals.
Sales Prices: Both apartments and villas recorded a 3% price increase in Q2.
Government Support: The First-Time Home Buyer Program launched in July 2025 offers preferential mortgages (up to AED 5M), 10% discounts on new units, and flexible DLD fee installment plans to support residents in entering the property market.
Commercial Market: Office demand also expanded, with notable projects such as Lumena by Omniyat and Uptown Dubai Phase 2 announced.
Al Ain & Northern Emirates: Stable and Growing
The Northern Emirates and Al Ain are emerging as secondary growth hubs in the UAE.
New Launches: Over 8,000 residential units were announced across Sharjah, Ajman, and Ras Al Khaimah in Q2 2025.
Rental Market: Apartment rents rose 12% annually. Ras Al Khaimah led with 5% quarterly growth, followed by Sharjah (4%) and Ajman (2%).
Sales Growth: Apartment prices in RAK increased 4% QoQ and 18% YoY, while Sharjah recorded 11% YoY growth.
Al Ain: The market remained stable, with apartment rents up 10% annually and villa rents increasing by 4%. The city’s retail and office sectors are expected to grow further with new community centers launching by 2026