UAE Property Market Surges in Q1 2025
Over AED 239 Billion in Transactions
The UAE real estate sector has kicked off 2025 with exceptional performance, recording a staggering AED 239 billion in property transactions across five emirates in just the first quarter. This record-breaking start reinforces investor confidence and underlines the country’s continued appeal as a safe, strategic, and high-growth investment destination.
According to official figures compiled from government registries in Abu Dhabi, Dubai, Sharjah, Ajman, and Ras Al Khaimah, a total of 94,719 property transactions — including sales, purchases, and mortgages — were completed between January and March 2025. This momentum is a continuation of the strong trajectory seen in 2024, and experts forecast it will intensify throughout the year.
Dubai Remains the Powerhouse
Leading the pack is Dubai, which registered AED 193 billion in property transactions during Q1 2025 from 58,039 deals. This represents a 16.2% increase in value and a 31.5% rise in transaction volume compared to the same period in 2024. Of the total, AED 142 billion came from 45,077 sales transactions, while mortgage activity accounted for AED 41 billion across 10,949 transactions.
Key locations like Al Furjan, Creek Beach, and Downtown Dubai have attracted strong interest from international buyers seeking high returns and long-term capital appreciation.
The surge is driven by Dubai’s investor-friendly reforms, visa programs, and sustained infrastructure development. Developers like Emaar, Danube, and Peace Homes Group continue to roll out new projects that attract domestic and foreign investors alike.
Abu Dhabi’s Growth Continues
Abu Dhabi reported an impressive AED 25.3 billion in real estate transactions, marking a 34.5% increase from Q1 2024. Data from the Abu Dhabi Real Estate Centre indicates 3,819 sales deals totaling AED 15.51 billion, with another AED 9.8 billion in mortgage activity from 3,077 transactions.
The capital’s upward trend is supported by high-profile development announcements and increased demand in emerging residential communities. These factors are attracting both institutional and individual investors to Abu Dhabi’s maturing real estate market.
Sharjah, Ajman, and Ras Al Khaimah Show Strong Momentum
Sharjah recorded AED 13.2 billion in property transactions across 24,597 deals — a 31.9% rise year-over-year. The emirate’s appeal lies in affordability, a growing mid-market housing segment, and proximity to Dubai. Ajman followed with AED 5.55 billion in transactions, up 29% from the previous year, while Ras Al Khaimah reported over AED 2.4 billion in off-plan residential sales.
Ras Al Khaimah’s market is gaining traction among lifestyle investors, especially those looking for waterfront and coastal properties. New resort-style developments are helping position the emirate as a desirable alternative for budget-conscious investors.
Investor Sentiment Remains Positive
According to Talal Al Dhiyebi, Group CEO of Aldar Properties, “The UAE’s real estate boom is fuelled by economic diversification, lifestyle appeal, and regulatory clarity — which collectively make it one of the most attractive places globally to live, work, and invest.”
Aldar itself reported AED 8.9 billion in sales in Q1 2025 — a 42% increase year-on-year — with occupancy rates across its portfolio exceeding 95%. The performance reflects strong buyer confidence and consistent demand across residential, commercial, and mixed-use segments.
Why the UAE Property Market Remains Resilient
Several factors are behind the surge in UAE real estate activity:
- Flexible long-term residency visas
- Zero capital gains tax
- Strategic geographic location connecting East and West
- World-class infrastructure and security
Furthermore, upcoming global events and continuous tourism investments are enhancing the country’s global standing and economic diversification goals. Developers like Emaar, Danube, and Peace Homes Group continue to capitalize on this momentum with strategic project launches in prime areas.
Looking Ahead
As Q2 2025 unfolds, real estate experts expect further acceleration in transaction volumes, particularly in the off-plan segment. More international investors are entering the market, attracted by robust returns, currency diversification, and the UAE’s reputation as a politically stable and economically dynamic country.
With continuous innovation, evolving policies, and strong economic fundamentals, the UAE remains one of the most resilient and rewarding real estate markets globally. For investors seeking long-term growth, now is the time to explore opportunities in high-potential areas such as Al Furjan, Creek Beach, and Downtown Dubai.
