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UAE real estate is the world’s new hotspot: Here’s why

Growth has been recorded across residential, commercial, and industrial property segments, positioning the market for a sustained momentum

Nida Sohail
Nida Sohail

02 September, 2025

UAE real estate is the world’s new hotspot: Here’s why
Image credit: WAM/Website

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The UAE’s real estate sector continues to demonstrate robust performance in 2025, driven by the resilience of both oil and non-oil sectors alongside a surge in foreign investment inflows. Growth has been recorded across residential, commercial, and industrial property segments, positioning the market for sustained momentum throughout the year.

Latest reports from global real estate specialists confirm the sustainability of the UAE’s economic momentum in 2025, highlighted by the launch of major real estate projects, record-breaking sales figures, and rising occupancy and rental rates across multiple sectors, a WAM report said.

Read more-Why Abu Dhabi is the new hotspot for homebuyers

Ismail Al Hammadi, Founder and CEO of Al Ruwad Real Estate, highlighted the strength of the market: “Property transactions across all emirates demonstrate significant growth and sustained momentum, underscoring the sector’s strength and investor confidence.”

Al Hammadi pointed to Dubai’s property market as a particular standout. “Dubai’s real estate transactions continue to show remarkable growth, reflecting the emirate’s global appeal to investors. Some projects scheduled for delivery within three years sell out in just one or two weeks, something rarely seen anywhere else in the world.”

Saeed Abdulkareem Al Fahim, CEO of Stratum Owners Association Management, echoed this optimism. “The UAE property market is witnessing remarkable activity and growth, especially in Abu Dhabi and Dubai. Demand continues to increase across a wide range of properties, from luxury units to mid-range housing.”

Market highlights from CBRE and industry reports

According to CBRE’s UAE Real Estate Market Review Q2 2025, the sector’s resilience is supported by the country’s robust economy, an improved growth outlook, a rebound in oil production, and rising foreign investment.

Residential markets in Dubai and Abu Dhabi remain highly active, with strong off-plan launches underpinned by sustained investor demand. Office markets in both cities are also experiencing rising occupancy and robust rental growth. Meanwhile, the industrial sector is attracting increasing international investor and developer interest, particularly in key logistics assets, driving rental growth.

Dubai’s residential market continued its upward trajectory into July 2025, as reported by Betterhomes, which cited data from Property Monitor and client insights. The market is seeing rising transaction volumes and steady demand across both off-plan and secondary sales and rentals.

Supporting these observations, W Capital Real Estate reported that property sales in Dubai reached an unprecedented Dhs100bn from January 1 to March 4, 2025. This milestone was reached earlier than in previous years, March 22 in 2024 and April 11 in 2023, signalling accelerating market activity.

Dubai’s property sales grew by 40 per cent in the first half of 2025, reaching Dhs326.64bn compared to Dhs233bn in the same period last year. Knight Frank, a leading independent real estate consultancy, noted the historic pace with which Dubai surpassed Dhs100bn in sales by early March, emphasizing the emirate’s rising momentum.

Adding to Dubai’s global stature, the city retained its position as the world’s busiest market for homes priced above $10m for the second consecutive year in 2024. The emirate recorded 435 sales in this ultra-luxury bracket, almost equal to the combined total sales in London and New York.

Strategic initiative: First-time home buyer programme

In a move aimed at broadening access to homeownership, Dubai recently launched the First-Time Home Buyer Programme, marking a strategic milestone for the city’s real estate evolution. This initiative complements other innovations such as tokenised real estate and reinforces the government’s commitment to building a sustainable property market.

Led by the Dubai Land Department (DLD) and the Department of Economy and Tourism (DET), the programme is backed by 13 major developers and five banks. It offers first-time buyers priority access to new property launches priced up to Dhs5m, according to CBRE’s market review.

Available to both UAE nationals and residents, the programme is designed to stimulate end-user demand and encourage long-term occupancy. It seeks to rebalance the market, which has seen an increasing share of off-plan buyers who are non-residents in recent years.

Key incentives include preferential pricing, tailored mortgage solutions, and flexible fee payment options. These aim to ease affordability pressures following five consecutive years of solid price gains.

While the full impact is yet to be realised, industry experts expect the programme to encourage more residents to transition from renting to owning. This shift could stimulate demand for home acquisitions and potentially soften current leasing market dynamics, which have contributed to rising living costs across the emirate.

Balanced growth amid emerging challenges

The UAE’s economy continues to show strong momentum, with growth forecasts for 2025 upgraded amid a rebound in oil production, robust non-oil sector performance, and rising foreign investment. However, geopolitical tensions and global trade uncertainties pose potential downside risks.

Residential markets in Dubai and Abu Dhabi remain highly active, with off-plan launches in Q2 2025 backed by sustained investor demand that continues to support price growth. That said, early signs of moderation in sales and rental values are emerging in certain communities, suggesting a potential softening after years of rapid increases.

Office markets in both cities maintain high occupancy and strong rental growth, driven by limited new supply and steady demand from finance, technology, and other key sectors.

Tourism, a vital pillar of the UAE economy, continues to show year-on-year growth in visitor numbers. This supports strong hotel performances nationwide, reinforcing the sector’s role in economic diversification and non-oil growth.

The retail sector, however, is grappling with a shortage of available space across prime malls, resulting in continued rental growth. The limited pipeline for new retail supply suggests a sustained landlord’s market for the foreseeable future.

Meanwhile, the industrial sector remains resilient, with rising interest from international investors and developers. Prime logistics assets continue to experience rental growth, buoyed by the expanding role of the UAE as a regional logistics hub.

Global air passenger demand rises 4 per cent in July – IATA

Middle Eastern carriers saw a 5.3 per cent year-on-year increase in demand. Capacity rose by 5.6 per cent year-on-year, and the load factor was 84.1 per cent

Gulf Business
Gulf Business

02 September, 2025

Global air passenger demand rises 4 per cent in July – IATA
Image: Getty Images/ For illustrative purposes

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Global passenger demand grew 4 per cent in July compared to the same month last year, driven by stronger international traffic, the International Air Transport Association (IATA) said on Sunday.

Total demand, measured in revenue passenger kilometers (RPK), rose 4.0 per cent year-on-year, while total capacity expanded 4.4 per cent. The global load factor slipped 0.4 percentage points to 85.5 per cent.

International demand increased 5.3 per cent compared to July 2024, outpacing domestic growth of 1.9 per cent.

Globally, International capacity grew in July: IATA data shows

International capacity was up 5.8 per cent year-on-year with a load factor of 85.6 per cent, while domestic capacity rose 2.4 per cent with a load factor of 85.2 per cent.

IATA said growth in international RPK was recorded across all regions except Africa, while Brazil remained the strongest domestic market. Japan’s domestic load factor hit 81.4 per cent, a record high for July since at least 2000.

Middle Eastern carriers registered a 5.3 per cent increase in demand, with capacity up 5.6 per cent and load factors easing to 84.1 per cent, down 0.2 percentage points. IATA said the rebound followed disruptions from the military conflict in June.

“It’s been a good northern summer season for airlines. Momentum has grown over the peak season with July demand reaching 4 per cent growth. That trend appears across all regions and is particularly evident for international travel, which strengthened from 3.9 per cent growth in June to 5.3 per cent in July,” said Willie Walsh, IATA’s director general.

“With flight volumes showing a 2 per cent year-on-year increase for September after five months of decelerating growth, airlines are positioned to take advantage of this market momentum into the coming months,” he added.

Public transport updates: Dubai Metro lines rerouted, more public bus services

The new lines reduce travel time and make daily trips more efficient during peak periods

Neesha Salian
Neesha Salian

01 September, 2025

Public transport updates: Dubai Metro lines rerouted, more public bus services
Images: Dubai Media Office/ RTA

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RTA has announced that Dubai Metro will operate from Centrepoint Station to Life Pharmacy Station, Expo 2020 Station and back, and from Centrepoint Station to Al Fardan Exchange Station (Al Khail) and back during peak hours.

The new lines reduce travel time and make daily trips more efficient, RTA said on social media platform, X.

New signage at Metro stations

The RTA recently completed an upgrade of wayfinding signage across all Dubai Metro stations. The move aims to enhance the commuting experience, boost user satisfaction, and streamline daily travel across the Red and Green lines of the Metro, as well as the Dubai Tram.

View post on X

Read: New signs, smoother rides: RTA transforms Dubai Metro navigation

In other news, RTA also inaugurated five new public bus routes on August 29, as part of efforts to expand its network in line with population growth and urban expansion.

New RTA bus routes

Adel Shakri, director of Planning and Business Development at RTA’s Public Transport Agency, said the new services aim to provide faster and more convenient connections while strengthening integration with other modes such as the metro, tram and marine transport.

Among the additions, Route 31 will link Dubai Silicon Oasis with Dubai Outsource City, operating every 20 minutes during peak hours.

Two routes, 62A and 62B, will replace the existing Route 62, serving Al Qusais Metro Station and extending connections to Ras Al Khor’s Samari Residences, with 30-minute headways.

Route F26A will connect Onpassive Bus Station with Al Quoz Industrial Area 4, also at 30-minute intervals. Route X91 will provide an express link between Al Ghubaiba and Jebel Ali Bus Stations, bypassing Business Bay Metro Station.

At the same time, nine existing routes will be modified to improve efficiency. These include converting circular routes such as Route 7, Route 77 and Route F62 into two-directional services, shortening Route 91 to run only between Al Ghubaiba and Business Bay, and adjusting others such as Routes 21A, 21B, 50, X25 and J01.

In other news, the RTA reopened its Customer Happiness Centres in Umm Ramool and Al Barsha following comprehensive redevelopment to transform them into hybrid centres.

The initiative forms part of RTA’s integrated plan to expand digital service provision in line with the UAE Digital Government Strategy and Dubai Government’s “Services 360” vision.

The two centres now offer customers fully automated services through digital devices, alongside service advisors dedicated to specific beneficiary groups, thereby further enhancing customer happiness.

PRYPCO Blocks introduces UAE’s first upfront rental guarantee

The model allows investors to access immediate liquidity rather than waiting for monthly or quarterly payouts

Gulf Business
Gulf Business

01 September, 2025

PRYPCO Blocks introduces UAE’s first upfront rental guarantee
Image: Supplied

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PRYPCO Blocks, the Dubai-based fractional real estate ownership platform, has introduced the UAE’s first upfront rental guarantee for property investors, offering an annual return paid in advance.

For the first time in the country, fractional property investors will receive a 5 per cent annual net rental yield credited to their PRYPCO Blocks wallets within two months of investment, the company said on Monday.

The model, comparable to a landlord collecting a year’s rent in one cheque, allows investors to access immediate liquidity rather than waiting for monthly or quarterly payouts.

The firm said the initiative would help investors reinvest, diversify portfolios, and allocate capital more efficiently.

PRYPCO Blocks reduces platform entry fee

PRYPCO Blocks also announced a 33 per cent reduction in its platform entry fee, cutting charges from 1.5 to 1 per cent.

“PRYPCO Blocks was created to make real estate investment easier, faster, and more rewarding,” said Amira Sajwani, founder and CEO of PRYPCO. “With the upfront rental guarantee, we are setting a new benchmark by giving investors confidence, liquidity, and the ability to realise returns from day one. It’s investor-first, it’s innovative, and it aligns with our vision of enabling real estate freedom for all.”

The upfront guarantee is based on three principles, the company said: providing rental income within two months, combining the stability of real estate with faster returns, and encouraging reinvestment through upfront payouts.

PRYPCO Blocks said the initiative is part of its broader vision to lower barriers to property ownership and reshape real estate investing in the region.

Read: PRYPCO, Ovaluate’s launch new AI-powered instant valuation tool

PRYPCO Blocks operates as a property investment crowdfunding platform with a commercial licence regulated by the Dubai Financial Services Authority (DFSA). Its perations are subject to strict regulatory oversight and compliance with the DFSA’s regulations and guidelines.

Dock & Dine in Dubai: New initiative launches for yacht visitors

Dubai’s strategic location, combined with simplified entry procedures and tailored visa packages, also ensures a seamless arrival experience for foreign-flagged vessels, which can remain in Dubai waters for up to six months

Gulf Business
Gulf Business

01 September, 2025

Dock & Dine in Dubai: New initiative launches for yacht visitors
Image: Dubai Media Office

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In a strategic move to enhance short-stay yachting visits, further reinforce the city’s position as a global yachting destination, and put the city at the forefront of the global trend of seamless waterfront dining, the Dubai Maritime Authority (DMA) at the Ports, Customs and Free Zone Corporation and the Dubai Department of Economy and Tourism (DET) have launched an innovative Dock & Dine initiative.

Encompassing 20 of the top marinas and marine stations in the city, the initiative represents the most comprehensive marina dining concept in the region and directly advances the ambitious goals of the Dubai Economic Agenda, D33, to further consolidate Dubai’s position as a leading global destination for business and leisure.

Read: Dubai introduces new licence service for visiting boat owners

Curated selection

Dock & Dine is tailored for those seeking to dock for a short stay and enjoy the finest waterfront dining experiences, and enables yacht owners, crews, and guests to access a curated selection of restaurants, luxury hotels, cultural attractions and entertainment directly from the city’s marinas.

Guests can sail to different docks and restaurants, enjoying a diverse range of excellent cuisines served in beautiful settings – all within a convenient 45-minute to one-hour radius from each other.

Among the major benefits provided by the Dock & Dine initiative are free moorage at participating marinas and marine stations; a rapid booking response time with a reservation window of just five minutes to one hour; direct communication with restaurants for advanced table arrangements; and dedicated dock tenders to facilitate smooth drop-off and pick-up processes.

With the streamlining of regulations, a standardised process has been rolled out citywide, ensuring a consistent and hassle-free experience for both yacht visitors and marina operators.

Sheikh Dr Saeed bin Ahmed bin Khalifa Al Maktoum, CEO of the Dubai Maritime Authority, said: “The Dock & Dine initiative represents the forward-thinking approach that has defined Dubai’s maritime development. With strong guidance from our visionary leadership and a spirit of close cooperation between government and industry partners, we have harmonised marina regulations and enhanced operational processes across the board.

“This not only improves the arrival experience for foreign-flagged vessels but also ensures every yacht guest enjoys streamlined access and world-class service. Working alongside the Dubai Department of Economy and Tourism (DET), we are proud to galvanise the yachting sector, support tourism growth, and contribute to Dubai’s dynamic economy. The Dock & Dine initiative reflects our commitment to exceptional service, safety, and innovation – key pillars that are essential in driving Dubai’s position as a global yachting and tourism destination.”

Vibrant calendar

By simplifying access to these amenities, the initiative enhances the yachting experience, particularly during the peak winter season from October to April, when Dubai’s tranquil waters, warm climate, and vibrant calendar of events attract a growing number of international visitors including those seeking unique culinary and maritime adventures.

With more than 4,000 berths across its extensive network of marinas and marine stations, Dubai is uniquely equipped to accommodate a diverse range of vessels, from pleasure craft to superyachts.

Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing (DCTCM), part of DET, said: “This initiative marks a pivotal moment in Dubai’s maritime journey and is a testament to visionary leadership that has transformed Dubai into a global yachting hub.

“By establishing convenient connections between our world-class marinas and dining experiences, we are enriching the wide-ranging value proposition that positions Dubai as the ideal base for international yacht tourism and a must-visit destination.

The programme also exemplifies our commitment to fostering partnerships with industry leaders like the Dubai Maritime Authority, further elevating the yachting experience. The continuous public-private sector collaboration is shaping a vibrant, sustainable yachting ecosystem that benefits residents and visitors, the environment, and our economy, aligning with the D33 agenda while advancing our ambition to make Dubai the world’s best city to visit, live, and work in.”

Read: Dubai now has two restaurants with 3 MICHELIN stars, see details

Marinas participating in the Dock & Dine initiative

The marinas participating in the Dock & Dine initiative include: Al Seef Marina, Bulgari Marina, Creek Marina Yacht Club, Dubai Islands Marina, Dubai Creek Marina, Dubai Harbour Marinas, Dubai Marina Yacht Club, Jebel Ali Marina, Jewel of the Creek Marina, Jumeirah 1 Marina, Mina Rashid Marina, Marasi Bay Marina, Marsa Al Arab Marina, Palm Azure Jetty, Palm East Vista Mare Jetty, Palm Jumeirah Marina, Palm West Club Jetty, Port De La Mer Marina, Umm Suqeim 1 Marina, and Umm Suqeim 2 Marina.

The launch of the initiative underlines the strong synergy between yachting and gastronomy sectors, allowing guests to disembark and enjoy signature waterfront dining experiences.

It comes amid increasing global recognition for Dubai’s vibrant food and beverage offerings, with the recently-announced fourth edition of the MICHELIN Guide Dubai featuring a total of 119 restaurants.

This unique concept highlights Dubai’s remarkable progress in developing a comprehensive nautical ecosystem, driven by close collaboration between the government and private sectors and sustained investment in state-of-the-art maritime infrastructure.

The city’s marinas offer advanced maintenance and repair facilities, marine services, specialty shops, and wellness centres, catering to the needs of yachting enthusiasts and industry professionals alike.

Dubai’s strategic location between East and West, combined with simplified entry procedures and tailored visa packages, also ensures a seamless arrival experience for foreign-flagged vessels, which can remain in Dubai waters for up to six months.

UAE cabinet reshuffle sees Ahmed Al Sayegh take health portfolio

AbdulRahman bin Mohamed Al Owais will continue in his role as Minister of State for Federal National Council Affairs

Gulf Business
Gulf Business

01 September, 2025

UAE cabinet reshuffle sees Ahmed Al Sayegh take health portfolio
Ahmed Al Sayegh/Image credit: MOFA website

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Under the directives of President Sheikh Mohamed bin Zayed Al Nahyan, Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, has announced a cabinet reshuffle.

The reshuffle confirms Ahmed Al Sayegh as Minister of Health and Prevention, while AbdulRahman bin Mohamed Al Owais will continue in his role as Minister of State for Federal National Council Affairs.

Al Sayegh has served as Minister of State at the Ministry of Foreign Affairs since September 2018, leading the Ministry’s economic and commercial affairs portfolio with a focus on the UAE’s economic diversification strategy. He also managed bilateral relations with Asian nations and members of the Commonwealth of Independent States (CIS), strengthening strategic partnerships and expanding investment opportunities.

Read: Important information: UAE’s health ministry cuts services by half

Beyond his ministerial responsibilities, Al Sayegh is a member of the board of directors and executive committee at Abu Dhabi National Oil Company (ADNOC), a board member of the Abu Dhabi Fund for Development (ADFD), vice chairman of Emirates Nature–WWF, and co-chair of the UAE-UK Business Council.

His previous leadership roles span both public and private sectors, including chairman of Abu Dhabi Global Market (ADGM), chairman of Aldar Properties, chairman of Masdar, board member of Etihad Airways Group, board member of Mubadala Investment Company, and vice chairman of First Gulf Bank. He also held senior positions at ADNOC and the Abu Dhabi Investment Company.

Al Sayegh holds a Bachelor’s degree in Economics from Lewis & Clark College in the US.

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