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Now here’s a market that knows how to make a splash. First half of 2025, and the UAE property sector turns up the heat across the board. In Dubai, over 98,000 property deals get inked — that’s a roaring 22.6% above numbers from early 2024, painting the town red with AED 326.7 billion ($89 billion) in total value. Square metre prices? They leap to AED 17,319 ($4,715) on average. Off-plan steals the spotlight, snapping up around 59% of this roaring trade.
Momentum’s contagious; Abu Dhabi isn’t missing out. The property pulse here jumps to AED 51.7 billion ($14 billion), surging 39% ahead of last year’s pace. More than 14,000 transactions go through the roof in the capital. As for foreign investor appetite, 85 countries pitching in, spreading the action globally.
Over in Sharjah, the fever’s just as fierce. Six months, 48,000+ deals — 3.3% above last year and a hefty AED 27 billion ($7.35 billion) changing hands, up an eye-popping 48.1%. As in other emirates, investments in the residential segment prevail, commanding a stunning 75% share. Investors are flying in from all over: by now, 109 countries are in on the action.
Contents:
All Eyes on Market Transactions: Statistics
| Emirate | Transactions (H1 2025) | Total Value |
|---|---|---|
| Dubai | 98,603 | AED 326,7 billion ($89 billion) |
| Abu Dhabi | 14,167 | AED 51,7 billion ($14 billion) |
| Sharjah | 48,059 | AED 27 billion ($7,35 billion) |
| Ajman | 8872 | AED 12,4 billion ($3,4 billion) |
Dubai steals the thunder again — over 98,000 deals and almost AED 327 billion stacked up. Sharjah chases hard, nabbing second place on deal numbers, while Abu Dhabi locks in the heavyweight investment. And don’t sleep on Ajman; modest in size but growing with the same quiet confidence that makes any property hunter turn a head.
Price Moves & Big Shifts
May 2025 in Dubai — price indices on fire, leaping 15.6%. Apartments up 15.22%, houses up 17.81%. Demand won’t quit, buyers line up from every angle: investors, end-users, first-time dreamers.
A similar dynamic was seen in the Abu Dhabi housing market. The price index rockets up 18.16%. Apartments up 18.17%, houses 17.19%. The stability of the local market is due to the stable macroeconomic situation and competitive rental yields, especially in prestigious areas.
Step into Q1 and Dubai’s median apartment price jumps a solid 12% over the year, thanks to those sprawling, airy units becoming the new must-have. 2-bedroom apartments rose in price by 17%, and 3-bedroom apartments – by 10%, reflecting the increasing demand for large housing. In the villa segment, the median asking price increased by 8% year-on-year.
Abu Dhabi races ahead — the median apartment price surges 23%, plenty thanks to smaller spaces getting pricier by the minute. Villas tack on 18% gains; location and size rule the spread.
| Dubai | Abu Dhabi | |||
|---|---|---|---|---|
| Property type | Avg. Price (Q1 2025) | Annual Rise | Avg. Price (Q1 2025) | Annual Rise |
| Studio | 700 000 AED (190 500 $) | 11,11% | 930 000 AED (253 000 $) | 32,86% |
| 1-bedroom apartment | AED 1,28 million ($348,500) | 10,34% | AED 1,25 million ($340 500 $) | 28,87% |
| 2-bedroom apartment | AED 2,17 million ($591,000 | 17,3% | AED 2 million ($544,500) | 21,95% |
| 3-bedroom apartment | AED 3,97 million ($1,08 million) | 10,28% | AED 2,55 million ($694,000) | 14,35% |
| 3-bedroom villas | AED 2,9 million ($789,500) | 18,37% | AED 3,4 million ($925,500) | 21,43% |
| 4-bedroom villas | AED 3,9 million ($1,06 million) | 6,85% | AED 5,3 million ($1,44 million) | 19,1% |
| 5-bedroom villas | AED 13,54 million ($3,7 million) | 7,63% | AED 8,6 million ($2,34 million) | 14,67% |
Rental Scene: Up & Up,
Q2 2025 — the average gross rental yield in the country was 4.87%. The Emirates demonstrated the following indicators:
- Dubai – 6.31%
- Abu Dhabi – 5.39%
- Ras Al Khaimah – 2.79%
- Ajman – 4.98%
- Sharjah – 4.95%
May 2025 delivers on rising rents for all types of residential properties. Dubai rates jump 8.5% year-on-year, but the rocket fuel’s slowing down: in January, there was an increase of 14.3%, and a year earlier – by 21.1%. No surprise: 9,300 new homes pop on the market in Q1, as well as the launch of the Smart Rental Index system, aimed at determining the fair value of leases using artificial intelligence. Expect supply to hold strong through 2027–2028, before things tighten by 2029.
What’s lighting up Dubai’s rental world?
- Entry-level units are up 9%.
- Middle-market rents rise by 7%.
- Luxury rates explode — up by 53%.
- Bur Dubai is the place for affordable apartments; Jumeirah Village Circle, the darling of the middle set. And Dubai Marina is still the glam call for the high flyers.
- Damac Hills 2 wins budget houses, Al Furjan dominates middle-class, Dubai Hills Estate is the jackpot for villa luxury.
In Abu Dhabi, annual rent growth is gaining momentum. May rents spike 27.3% from the year before; January marked 20.4%, twelve months back, just 9.4%. As demand runs wild and outruns the trickle of supply, vacancy signs don’t stand a chance—occupancy rates just keep rising. What’s powering this surge? A steady march of fresh faces into the market, and there’s a trend to watch: renters coming out of Dubai, lured by price tags that don’t make their wallets cry. This surge isn’t just a fluke—look at the steady stream of newcomers pouring in. It’s especially clear when folks from Dubai catch wind of wallet-friendly rents and decide to make the move. That’s what’s really fanning the flames of this upswing: savvy renters chasing bigger value for their money and changing the game for the whole market. Economic recovery and improvements in the labor market, which attract foreign specialists, also pulls in the pros.
Capital city rental takeaways, H1 2025:
- Budget apartments leap 2–21%, houses up to 13%.
- Mid-market flats climb 3–19%, villas chase 7% gains.
- Hot spots: luxury flats +14%, standout houses +7%.
- Khalifa City nails budget flats, Al Reem Island grabs the mid-market, Saadiyat Island leads the luxury chase.
- As for houses, Khalifa City and Al Raha Gardens win for affordable and mid-market options, Yas Island clinches luxury villa fame.
Forecast: Opportunity Knocks
Population boom, big-money families, and investment houses fuel a premium-hungry market. Limited supply in the fanciest districts tightens the screws — prices and rents climb higher. But wave after wave of new builds loom on the horizon, as developers hustle in Dubai and Abu Dhabi; expect this to tame the wildest price hikes come year-end.
Word on the street: a price correction could be brewing for Dubai sometime in H2 when supply starts outstripping the emirate's breakneck growth. Still, expect the jewels — Palm Jumeirah, Downtown Dubai — to keep shining bright; land there is scarce, and demand forever stubborn. With the IMF’s 3.7% economic expansion forecast in 2025, hunger for homes keeps simmering well into the future.
