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What is happening in the UAE’s real estate market? Are prices on the rise or decline? Is Dubai still a magnet for international investors? How are government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from industry professionals, buyers, and sellers across the UAE, from Abu Dhabi to Sharjah and beyond. You might be curious about these trends too.
We know this because we stay closely connected with local experts and individuals like you, exploring the UAE real estate market daily. That’s why we crafted this article: to deliver clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed the mark or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
How this content was created 🔎📝
Fact-checked and reviewed by our local expert
Jean-Charles Salvin 🇫🇷
Co-Founder, Best Dubai Condos
1) Sharjah will draw more foreign buyers seeking affordable properties with convenient access to Dubai
Sharjah is quickly becoming a go-to spot for foreign buyers seeking affordable properties with easy access to Dubai.
With property prices in Dubai climbing, many are turning to Sharjah for more budget-friendly options. The city has been pouring resources into infrastructure projects like the expansion of the Sharjah Ring Road and the innovative SkyWay hanging railway system. These efforts aim to ease traffic congestion and make commuting to Dubai a breeze, especially with a major traffic alleviation project announced in 2023.
Government reforms have also made a big splash. In 2022, Sharjah expanded full real estate ownership rights to non-GCC nationals, leading to a surge in real estate transactions. This move has opened the doors for more non-Arab investors, making Sharjah a hot spot for foreign buyers.
In 2023, foreign investment in Sharjah's real estate sector hit a record AED 5.9 billion, showing a growing interest from international buyers. The market is diversifying, with more Indians and Egyptians investing. New residential projects like Arada's Aljada and Masaar developments are catering to expatriates, offering a variety of housing options that appeal to foreign buyers.
Surveys indicate a rising demand for affordable housing near Dubai, and Sharjah's proximity makes it an ideal choice for expatriates. The media is buzzing about Sharjah as an emerging real estate market, drawing more foreign investment and attention. Expatriates often highlight Sharjah's affordability and closeness to Dubai, reinforcing its appeal as a real estate destination.
Sources: Top Luxury Property, Oxford Business Group, AGBI
2) Abu Dhabi will attract more foreign investment with new visa rules easing expatriate settlement
Abu Dhabi is becoming a top choice for foreign investors, thanks to new visa rules that make settling easier for expatriates.
The introduction of long-term residency options, like the "Golden Visa," has been a real game-changer. These visas offer 5-year or 10-year residency periods, making them very attractive to those looking to live and invest in the UAE. This change has opened doors for many who previously found it challenging to establish a long-term presence in the country.
In 2023, Abu Dhabi experienced a staggering 363% increase in property purchases by foreign buyers, with investments reaching AED834.6 million. This trend didn't slow down in 2024, as the first half of the year saw a 225% rise in foreign direct investment in the real estate market. These numbers clearly show that foreign investors are gaining confidence in Abu Dhabi's real estate scene.
The Abu Dhabi Real Estate Centre reported that the emirate attracted AED3.28 billion in real estate investments in the first half of 2024. This influx came from 971 individual investors spanning 75 different countries, underscoring the global interest in Abu Dhabi's market. The relaxed visa regulations have made it easier for these investors to purchase and own property, further boosting foreign direct investment.
What's interesting is that these changes are not just about numbers; they reflect a shift in how Abu Dhabi is perceived globally. The city is now seen as a more accessible and welcoming place for expatriates, which is a big deal for those considering a move. The new visa rules are not just a bureaucratic change; they are a signal that Abu Dhabi is open for business and ready to welcome new residents.
Sources: ADREC, AGBI, Rise Expo
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the UAE. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
3) Ras Al Khaimah will attract long-term investors with stable property prices and steady returns
Ras Al Khaimah's property market is known for its remarkable stability, making it a hot spot for long-term investors.
This stability is largely thanks to the emirate's booming tourism sector, which has boosted demand for rental properties. In 2024, popular areas like Al Marjan Island and Mina Al Arab saw rents rise by over 21% and 19% respectively, showing how tourism is driving the market.
The government is also playing a big part by promoting Ras Al Khaimah as a business hub. By attracting high-paying tourists and enhancing its appeal as a leisure and investment destination, the government has created a favorable environment for real estate investment.
Ras Al Khaimah's strategic location and free trade zones are magnets for international companies and investors. This has led to an influx of foreign direct investment, which in turn has boosted rental earnings and property values.
Major infrastructure projects are underway, enhancing connectivity and supporting future growth. This development is a key factor in maintaining the stability of the property market, making it a reliable choice for investors.
Sources: Top Luxury Property, Profound Realtors, Inres Real Estate
4) Ajman’s rental market will grow moderately as residents look for affordable living options
Ajman's rental market is poised for moderate growth as more people seek affordable living options.
With rental prices in Dubai and Abu Dhabi climbing by 15-20% in 2024 and expected to rise another 5-10% in 2025, many residents are looking for budget-friendly alternatives. Ajman, with its proximity to these major cities, is becoming an attractive option for those who want to save on housing costs while still being close to urban centers.
Ajman's strategic location is not just about saving money; it's also about convenience. The government is actively enhancing infrastructure and connectivity, making it easier for people to commute to nearby cities. This has led to a growing population and workforce in Ajman, as more people find it a practical place to live and work.
In the first half of 2024, Ajman saw a 49% increase in rental transactions, a clear indicator of its rising popularity. This surge is backed by new residential developments aimed at middle-income earners, providing them with affordable housing options. These developments are crucial in meeting the demand for budget-friendly homes.
Ajman's appeal is further boosted by its community-focused living environment, which offers a contrast to the hustle and bustle of larger cities. The area is becoming a hub for those who value a balanced lifestyle, with more people choosing Ajman for its better living conditions and community feel.
As more residents flock to Ajman, the rental market is expected to continue its upward trend, driven by the need for affordable housing and the area's growing reputation as a convenient and pleasant place to live.
Sources: Bayut, IM Properties, Ajman Properties, Khaleej Times, Dubizzle
5) Rental prices in Dubai's Downtown and Marina will rise due to strong demand from expatriates
Dubai's rental prices in hotspots like Downtown and Marina are on the rise, driven by high demand from expatriates.
In 2024, Dubai's population surged by 159,000 people, mostly due to expatriates flocking to the city. This influx has naturally increased the demand for housing, especially in central areas like Downtown and Marina, which are highly sought after.
Expatriates love these areas for their vibrant lifestyle and job proximity. Surveys show that these central locations are top choices for newcomers, pushing up the demand for rentals.
Real estate in these areas is experiencing high occupancy rates, meaning there's not much available. This scarcity, paired with strong demand, is causing rental prices to climb.
Dubai's lifestyle and amenities are a big draw, as highlighted in media and social media. This appeal is further boosting the demand for rentals in Downtown and Marina.
Corporate relocations to Dubai are also a factor. As companies move here, they need housing for employees, adding to the demand in these key areas.
Sources: JobxDubai, Carril Agency, Haus & Haus, 11Prop, Khaleej Times
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6) Abu Dhabi’s rental market will grow steadily as international businesses flock to the city
Abu Dhabi's rental market is set for steady growth as the city continues to attract international businesses.
In the first half of 2024, Abu Dhabi saw a 225% increase in real estate investments, reaching AED 3.28 billion. This surge shows that international investors are gaining confidence in the city's real estate market. The influx of foreign direct investment (FDI) is a clear sign that Abu Dhabi is becoming a hotspot for global business.
Abu Dhabi's appeal to international companies is largely due to its business-friendly policies and free zones. Areas like Abu Dhabi Global Market Square are seeing office occupancy rates expected to exceed 98%, highlighting the strong demand for office spaces. As more businesses set up shop, the need for rental accommodations rises, with employees relocating to the city.
The government's initiatives, such as Ghadan 21, are pivotal in this growth. These programs provide strategic funding for real estate development and infrastructure improvements, making Abu Dhabi an attractive destination for businesses and expatriates alike. The expansion of free zones and supportive policies further fuels this trend.
Key areas like Al Maryah Island and Al Reem Island are experiencing significant investment activity. These locations are becoming prime spots for both business and residential developments, thanks to the city's efforts to diversify its economy and attract global talent.
Sources: ADREC, Top Luxury Property, Jobx Dubai
7) Abu Dhabi’s property prices will rise moderately due to limited new supply and steady demand
Abu Dhabi's real estate market is seeing moderate price increases due to a limited number of new residential projects.
In 2023, only 27 new projects were announced, adding about 5,200 housing units to the market. This limited supply is a key reason for the current price trends. The city is not overbuilding, which helps keep prices stable and attractive for potential buyers.
Historically, property prices in Abu Dhabi have been on the rise, with experts predicting a 5-7% growth in 2024. This is largely due to the strong demand for off-plan sales, which jumped from 2,700 transactions in 2021 to 10,000 in 2023. Such demand shows that people are still very interested in investing in Abu Dhabi's real estate.
The population of Abu Dhabi has grown significantly, reaching 3.78 million in 2024. A large expatriate community is driving the demand for housing, which keeps the market lively. This demographic shift, along with attractive rental yields, helps maintain a balance between supply and demand.
Abu Dhabi's real estate market is unique because it offers attractive rental yields, making it a good investment for those looking to buy property. The steady demand and limited new supply mean that prices are likely to continue their moderate increase.
Sources: Top Luxury Property, Al Etihad, Global Media Insight, Abu Dhabi Off Plan
8) Dubai's property prices will stabilize after rapid growth, creating more opportunities for buyers
Dubai's residential property market is showing signs of stabilization after a period of rapid growth.
With an influx of new homes, the market is becoming more balanced. By 2025 and 2026, around 41,000 and 42,000 new units are expected, a jump from the 27,000 units in 2024. This increase in supply is good news for buyers, as it means more options and potentially better prices.
Government actions are also helping to stabilize the market. New regulatory policies are in place to ensure a balance between demand and supply, creating a more sustainable environment. Plus, visa reforms have made Dubai more attractive for long-term investments, giving investors and professionals confidence in planning for the future.
Looking at the past, Dubai’s property values have always been cyclical. After a huge growth of 44.4% in 2022 and 16.3% in 2023, prices are expected to level out in 2025. This is a relief for potential buyers, as the forecast for 2024 is a modest 5% increase in prime residential values, with similar growth expected in 2025.
For those considering buying property in Dubai, this stabilization period could be a great opportunity. The market is becoming more predictable, and with more homes available, buyers have a better chance of finding something that fits their needs and budget.
Overall, the combination of increased supply and supportive government policies is creating a more stable and attractive market for buyers. This is a promising time for anyone looking to invest in Dubai's real estate.
Sources: LuxLiving, Zawya, The Luxury Playbook
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the UAE versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
9) Young professionals from Asia will boost demand for modern apartments in UAE urban areas
The UAE's population has surged to 12.50 million in 2024, up from 10.24 million in 2021.
This boom is largely fueled by expatriates, with South Asians making up 70.65% of this group. The influx is driven by job opportunities, as the employed population has grown by 82% since 2011. Major companies like Microsoft, Amazon Web Services, and Unilever have set up shop here, attracting young professionals from Asia.
Urban living is the norm, with 87.6% of people living in cities by 2023. This shift is paired with a strong demand for modern apartments, especially among Filipinos, who are a significant part of the urban population in places like Dubai.
For those considering a move, the UAE offers a vibrant urban lifestyle with plenty of job prospects. The demand for modern apartments is high, particularly among young professionals seeking convenience and a cosmopolitan lifestyle.
In cities like Dubai, the real estate market is buzzing with activity, driven by the influx of young, skilled workers. This trend is reshaping the urban landscape, making it an exciting time for property investors.
As more young professionals from Asia make the UAE their home, the demand for contemporary living spaces continues to rise, offering a promising outlook for the real estate market.
Sources: Global Media Insight, UAE Stories, Global Media Insight
10) Buyers will favor space and privacy over high-rise apartments in crowded areas
In the UAE, buyers are moving away from high-rise apartments in crowded city areas.
People are now eyeing villas and townhouses in the suburbs. Sales of these properties jumped by 30% in the first half of 2024, according to the Dubai Land Department. Suburban spots like Dubai Hills Estate and Arabian Ranches are popular because they offer more space at better prices.
Surveys show that residents want bigger homes. Many are heading to places like Dubailand, which saw a 30% rise in move-ins. Social media and news outlets are buzzing about the perks of suburban life, like having more room and better amenities.
Remote work is also a game-changer. With more people working from home, living in the city center is less appealing. The pandemic made folks rethink their priorities, putting space and privacy at the top of the list.
Real estate agents and market analyses back this up, showing a clear trend toward low-density housing. Buyers are choosing larger, more private homes in the suburbs over cramped city apartments.
High-rise apartments in busy areas are losing their charm as people look for more room to breathe. Suburban living is becoming the go-to choice for those seeking a better lifestyle.
Sources: Unique Properties, Gulf News, PSI Blog
11) Dubai's luxury market will attract more foreign buyers due to its global appeal and tax-free benefits
In 2024, foreign investors dominated over half of Dubai's luxury property sales, showing a strong international interest.
Dubai's luxury real estate market is booming, with a 47% jump in sales of properties over AED 10 million in the first half of 2024 compared to last year. This surge highlights a growing appetite for high-end homes. The city is also set to welcome around 6,500 ultra-high-net-worth individuals each year from 2024 to 2026, which will likely push the demand for ultra-luxury properties even higher.
One of the biggest attractions for foreign buyers is Dubai's tax-free environment. With no property or capital gains taxes, investors find it an ideal place to diversify their portfolios. This, coupled with Dubai's global appeal and strategic location, makes it a magnet for millionaires and billionaires looking for luxury real estate.
Dubai's reputation as a safe investment haven is another key factor. Amid global uncertainties, the city offers stability and security, which is why the total value of real estate transactions soared to AED 177.4 billion, marking a 25% increase from 2023.
For those eyeing the luxury segment, Dubai's market offers not just opulence but also a strategic investment opportunity. The city's blend of modernity and tradition, along with its vibrant lifestyle, adds to its allure, making it a top choice for affluent buyers worldwide.
As more foreign buyers target Dubai's luxury segment, the city's global appeal and tax-free environment will continue to draw interest. The trend is clear: Dubai is becoming a hotspot for luxury real estate investments.
Sources: Unique Properties, Khaleej Times, The Luxury Playbook
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12) Al Hamra Village in Ras Al Khaimah will attract retirees looking for a tranquil coastal lifestyle
Al Hamra Village in Ras Al Khaimah is quickly becoming a top choice for retirees seeking a peaceful coastal lifestyle.
In recent years, property sales have surged in this charming area, with a 6.25% increase in property prices from 2023 to 2024. This uptick shows a growing interest in settling down in a serene environment. The local government is actively promoting Ras Al Khaimah as a peaceful place to live, offering special visa schemes and tax benefits to attract international buyers.
These incentives make it an appealing spot for retirees. The emirate is also enhancing its healthcare services, with facilities like Al Hosn Elderly Care providing expert care right at home. This focus on healthcare ensures retirees enjoy a high quality of life.
Adding to the allure, leisure and recreational facilities are expanding. The upcoming Wynn Al Marjan Island resort is a prime example, offering amenities that cater to retirees. The emirate's pleasant climate further boosts Al Hamra Village's appeal as a retirement haven.
With these developments, Al Hamra Village is poised to become a hotspot for those looking to enjoy their golden years by the sea. The combination of government initiatives, healthcare improvements, and leisure options creates an ideal setting for retirees.
Sources: Khaleej Times, Al Hosn Home Care, Top Luxury Property
13) Demand for luxury villas in Palm Jumeirah will grow as affluent buyers seek exclusive waterfront properties
The demand for luxury villas in Dubai's Palm Jumeirah is on the rise as affluent buyers seek exclusive waterfront properties.
In recent years, property prices in Palm Jumeirah have surged, with a penthouse setting a new record by selling for over $136 million in December 2023. Even when sales dipped, the average price per square foot still climbed by 8.5%, highlighting the strong demand and increasing property values.
International buyers are a driving force in Dubai's luxury real estate market. In 2024, over half of luxury property sales were to foreign investors, with significant interest from the UK, India, Russia, and China. Dubai's strategic position as a global luxury hub continues to attract ultra-high-net-worth individuals.
Palm Jumeirah's allure is further enhanced by its limited availability of new waterfront developments. The area is running out of undeveloped land, which adds to its exclusivity and drives up property prices, making it even more appealing to affluent buyers.
For those considering a property investment, Palm Jumeirah offers a unique blend of luxury and exclusivity. The scarcity of new plots means that existing properties are becoming increasingly valuable, ensuring a sound investment for the future.
Sources: Dubai Chronicle, Unique Properties, AGBI
14) Sharjah's rental prices will stay competitive, attracting families and budget-conscious renters
Sharjah's rental prices are consistently lower than those in Dubai and Abu Dhabi, making it a budget-friendly choice.
Imagine paying between AED 3,000 to AED 6,000 for a one-bedroom apartment in Sharjah, while the same would cost you AED 4,500 to AED 10,000 in Dubai or Abu Dhabi. This price gap is a big draw for families and those watching their wallets.
Sharjah isn't just about cheaper rents; it's buzzing with new projects like Al Mamsha and Tilal City. These developments are all about affordable housing, making the emirate even more appealing for families and budget-minded folks.
Families love Sharjah for its strong cultural and community vibe. It's a place where you can enjoy quality living without breaking the bank, thanks to its family-friendly environment.
Getting around Sharjah is easier and cheaper now with improved public transportation. This means you can save on commuting costs, which is a big plus for anyone trying to stick to a budget.
Sources: Business Standard, Bayut's Annual Sharjah Market Report 2023, Rentersapp
We have made this infographic to give you a quick and clear snapshot of the property market in the UAE. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
15) Rental yields in Dubai's affordable areas will rise with growing demand for budget-friendly housing
In Dubai, rental demand in affordable neighborhoods is on the rise.
Take Jumeirah Village Circle (JVC), for instance. It's one of the city's fastest-growing areas, with more residential complexes popping up and a projected population boom on the horizon. This naturally means more people are looking to rent, which is driving up rental yields.
According to the Dubai 2040 Urban Master Plan, the city's population is expected to grow from 3.3 million to 7.7 million by 2040. This surge is creating a strong demand for budget-friendly housing, especially among middle-income earners.
The government is also stepping in with initiatives like the Dubai Housing Strategy 2020-2025. These plans aim to make more affordable living options available by incentivizing developers to focus on budget-friendly projects. This is crucial as the cost of living in Dubai continues to rise, pushing residents to seek cheaper housing.
In neighborhoods like JVC, this focus on affordability is aligning perfectly with the needs of the population. As more people move to Dubai, the demand for these budget-friendly options is only going to increase, boosting rental yields in these areas.
So, if you're considering investing in property, these affordable neighborhoods might just be the sweet spot. With the city's growth and government backing, rental yields are likely to see a significant uptick in the coming years.
Sources: RP Realty Plus, House Finder, Emirates 24/7
16) New visa rules will simplify real estate investment for expatriates in the UAE
The UAE has recently revamped its visa rules, making it easier for expatriates to dive into the real estate market.
With the introduction of long-term residency options like the Golden Visa and Long-Term Residence Visas, expats can now enjoy 5-10 year stays without the hassle of constant renewals. This change is a game-changer for those looking to invest in property. The Golden Visa, launched in 2019, is especially appealing. It requires a minimum investment of AED 2 million in freehold properties and now allows for fractional ownership and joint investments, opening doors for more investors.
Previously, investors faced a minimum down payment of AED 1 million or 50% when buying property. But now, the UAE has removed this requirement for Golden Visa applicants, making it much easier to qualify. This move has led to a noticeable increase in property transactions by expatriates, as the process is now more accessible.
The UAE's real estate market is buzzing with activity, thanks to these changes. The market is expected to see a significant growth with a projected annual growth rate of around 8.4% from 2024 to 2030. This boom is fueled by strategic government initiatives that boost investor confidence and drive residential demand.
For those considering a move, the UAE's real estate market offers a promising opportunity. The combination of long-term visas and relaxed investment requirements makes it an attractive option for expatriates. The government's efforts to make the market more accessible are paying off, with more expats entering the scene.
These changes are not just about numbers; they reflect a broader strategy to position the UAE as a top destination for real estate investment. With the ease of entry and potential for growth, it's no wonder the market is drawing attention from around the globe.
Sources: Adept Biz Consulting, Sovereign Group, MarkNtel Advisors
17) New regulations will promote sustainable building, affecting residential property design and construction
New regulations are reshaping how homes are built in the UAE, focusing on sustainability.
In 2024, the UAE Ministry of Energy and Infrastructure rolled out the National Green Certificates Program, setting standards for energy efficiency, water management, and sustainable materials. This program is a roadmap for builders to adopt eco-friendly practices, making homes not just places to live but also part of a greener future.
Back in 2022, the UAE Cabinet approved new National Building Regulations aiming for a 25% cut in energy use and a 16% reduction in water consumption. These changes are nudging the construction industry towards more sustainable methods. Projects like Dubai’s Sustainable City are winning awards, showing a clear shift towards environmentally friendly building.
Government incentives are sweetening the deal for developers to go green. Financial perks like grants and tax credits are making sustainable construction more appealing. This push is backed by partnerships with environmental groups, exploring green finance solutions to hit energy efficiency goals.
The media spotlight on sustainable architecture is also growing, highlighting the benefits of these practices. This increased attention is helping to drive the demand for eco-friendly homes, making sustainability a key selling point in the real estate market.
As these regulations take hold, expect to see more homes designed with the environment in mind, using materials and methods that reduce their carbon footprint. The focus is on creating living spaces that are not only comfortable but also contribute to a sustainable future.
Sources: AOS Shearman, Ministry of Energy and Infrastructure, JD Supra
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.