UAE real estate enjoys record-breaking start to 2025

By Gn Focus Report

UAE real estate enjoys record-breaking start to 2025

Real estate transactions across five emirates in the UAE surged past Dh239 billion in the first quarter of 2025, underscoring strong investor sentiment and ongoing momentum in the country鈥檚 property sector, according to official data.A total of 94,719 sales, purchase, and mortgage deals were recorded between January and March in Abu Dhabi, Dubai, Sharjah, Ajman, and Ras Al Khaimah. The figures, compiled by government property registries and industry reports, mark a strong start to the year and reflect the UAE鈥檚 appeal as a destination for investment, living, and long-term residency.Talal Al Dhiyebi, Group Chief Executive Officer at Aldar Properties, attributed the sector鈥檚 performance to the UAE鈥檚 broader economic and cultural development. Speaking to the Emirates News Agency (WAM), Al Dhiyebi said, 鈥淭he UAE鈥檚 real estate boom is fuelled by the country鈥檚 progress on multiple fronts 鈥攅conomic diversification, lifestyle appeal, and regulatory clarity 鈥 which collectively make it one of the most attractive places globally to live, work, and invest.鈥滱l Dhiyebi noted that Aldar reported Dh8.9 billion in sales in the first quarter of 2025, a 42 per cent increase from the same period last year. Occupancy across the company鈥檚 real estate portfolio exceeded 95 per cent by the end of March, signalling sustained demand across residential, commercial, and mixed-use segments.Dubai leads Dubai once again led the national market, registering Dh193 billion in real estate transactions from 58,039 recorded deals 鈥 up 16.2 per cent in value and 31.5 percent in volume compared to Q1 2024.According to the Dubai Land Department, Dh142 billion of the total came from 45,077 sales transactions, representing a 30 per cent rise in value. Mortgage transactions also showed strength, reaching Dh41 billion across 10,949 deals 鈥 an increase of 27 per cent in volume. The remaining figure was comprised of grants and exchanges. -Industry analysts note that Dubai鈥檚 appeal continues to grow due to its investor-friendly policies, strong rental yields, and robust demand for both off-plan and ready properties. The city also benefits from a growing pool of international buyers, aided by long-term visa schemes and business-friendly reforms..Abu Dhabi on the rise The capital, Abu Dhabi, reported a total of Dh25.3 billion in real estate transactions during Q1 2025, marking a 34.5 per cent increase from the first quarter of 2024. Data from the Abu Dhabi Real Estate Centre showed that this included 3,819 sales deals worth Dh15.51 billion 鈥 a 26.7 per cent year-on-year rise 鈥 and 3,077 mortgage transactions totalling Dh9.8 billion, up 49 per cent.Abu Dhabi鈥檚 performance was buoyed by several large-scale development announcements and infrastructure enhancements, which continue to draw both institutional investors and end-users.Sharjah post strongest growth Sharjah recorded Dh13.2 billion in total property transactions from 24,597 deals in Q1 2025, according to the Sharjah Real Estate Registration Department. This represents a year-on-year increase of 31.9 per cent, the highest among the smaller emirates.The emirate鈥檚 appeal lies in its affordability and strategic location adjacent to Dubai. New mixed-use developments, coupled with growing interest in mid-market housing, are driving demand from both domestic buyers and GCC-based investors.Ajman and Ras Al Khaimah Ajman posted Dh5.55 billion in real estate transactions in the first quarter, an increase of 29 per cent compared to Q1 2024. Of this, Dh3.69 billion was generated through 3,132 sales and purchase transactions, while Dh905 million came from 498 mortgage deals. The remainder consisted of grants and property exchanges.Ras Al Khaimah continued its steady rise, with over Dh2.4 billion in residential off-plan sales from more than 1,300 transactions, according to a report from real estate consultancy CBRE. The northern emirate has been gaining attention for its lifestyle-focused developments, particularly in coastal and resort-style communities.Sustained confidence Real estate professionals and developers point to several factors driving the sector鈥檚 growth: flexible residency laws, strong capital inflows, high rental returns, and a stable macroeconomic environment. Additionally, the UAE government鈥檚 continued investment in infrastructure and tourism has bolstered long-term confidence in the sector.The first-quarter performance also reflects growing demand for both residential and commercial properties, with off-plan sales remaining a key driver in emerging neighbourhoods across the emirates.As the UAE moves into the second quarter of 2025, analysts expect continued momentum, with several high-profile projects scheduled for launch and growing interest from international markets.

Read More…