UAE Real Estate Transactions Surpass Dh239 Billion in Q1 2025

UAE Real Estate Market Reaches Dh239 Billion in Q1 2025

The UAE real estate sector recorded an impressive start to 2025, with total property transactions across five emirates surpassing Dh239 billion in the first quarter. The high figures highlight growing investor confidence, increasing demand for residential and commercial spaces, and the nation’s continued appeal as a global destination for real estate investment.

From January to March 2025, a total of 94,719 property transactions were completed in Abu Dhabi, Dubai, Sharjah, Ajman, and Ras Al Khaimah. The transactions, which include sales, purchases, and mortgages, reflect the UAE’s economic diversification and commitment to creating a vibrant, investor-friendly real estate ecosystem. The performance comes amid broader urban expansion, infrastructure growth, and regulatory enhancements that are attracting buyers from both domestic and international markets.

Aldar CEO Links Growth to Broader National Progress

Talal Al Dhiyebi, Group Chief Executive Officer of Aldar Properties, emphasized that the UAE’s real estate boom reflects its economic, cultural, and legislative advancements. In a statement to Emirates News Agency (WAM), Al Dhiyebi highlighted how regulatory clarity, a diversified economy, and lifestyle-driven development are driving investor interest from around the world.

Aldar Properties recorded Dh8.9 billion in sales during the first quarter of 2025. This figure marks a 42 percent increase over the same period in 2024. Occupancy across Aldar’s property portfolio exceeded 95 percent by the end of March, demonstrating the sustained demand for both residential and commercial real estate in the capital and beyond.

Dubai Leads UAE Property Market with Over Dh193 Billion

Dubai retained its position as the top performer in the national property sector. According to the Dubai Land Department, the city registered Dh193 billion in real estate transactions from 58,039 recorded deals in the first quarter of 2025. This figure reflects a 16.2 percent increase in value and a 31.5 percent rise in transaction volume compared to Q1 2024.

Sales transactions alone accounted for Dh142 billion from 45,077 deals, showing a 30 percent rise in value. Mortgage activity reached Dh41 billion across 10,949 transactions, marking a 27 percent increase in volume. The remaining value stemmed from property grants and exchanges.

Industry analysts point to Dubai’s investor-friendly laws, high rental yields, and steady demand for both off-plan and ready properties as core reasons behind the city’s continued growth. The city’s expanding pool of international buyers is supported by long-term visa programs, digital reforms, and transparent real estate regulations.

Abu Dhabi Sees Impressive Gains in Real Estate Transactions

Abu Dhabi followed closely behind Dubai with real estate transactions totaling Dh25.3 billion in the first quarter of 2025. This figure represents a 34.5 percent year-on-year increase from Q1 2024. According to the Abu Dhabi Real Estate Centre, the emirate saw 3,819 sales transactions valued at Dh15.51 billion, which is a 26.7 percent growth from the previous year.

Mortgage activity in Abu Dhabi also surged, reaching Dh9.8 billion across 3,077 deals—a 49 percent rise compared to Q1 2024. These results underscore growing interest in the capital’s expanding residential communities and mixed-use developments. Backed by government support and infrastructure upgrades, Abu Dhabi continues to draw institutional investors, first-time buyers, and families seeking long-term value.

Sharjah Posts Highest Growth Rate Among Northern Emirates

Sharjah recorded Dh13.2 billion in total property transactions across 24,597 deals during Q1 2025, representing a 31.9 percent year-on-year increase. According to the Sharjah Real Estate Registration Department, this was the highest growth rate among the UAE’s smaller emirates.

The emirate’s affordability and proximity to Dubai make it an attractive destination for mid-income buyers and GCC investors. Growing interest in mixed-use developments, educational zones, and cultural districts is pushing demand. Developers are responding with modern, family-friendly communities that balance value, accessibility, and quality of life.

Ajman Maintains Growth Momentum with Dh5.55 Billion in Deals

Ajman’s real estate sector posted Dh5.55 billion in transactions during the first quarter of 2025, marking a 29 percent increase compared to Q1 2024. Of this amount, Dh3.69 billion came from 3,132 sales and purchase transactions. Mortgage transactions added Dh905 million from 498 deals, while the rest involved property grants and exchanges.

The emirate continues to attract buyers with competitive pricing, infrastructure investments, and new residential zones close to major business hubs. Ajman’s appeal lies in its value-for-money housing options, improved connectivity, and growing commercial developments tailored to small businesses and entrepreneurs.

Ras Al Khaimah Sees Increased Interest in Coastal Developments

Ras Al Khaimah is gaining traction as a lifestyle-focused real estate market, especially for buyers seeking coastal or resort-style living. According to CBRE, the emirate recorded more than Dh2.4 billion in off-plan residential sales from over 1,300 transactions in Q1 2025.

With an emphasis on wellness, leisure, and sustainability, real estate projects in Ras Al Khaimah cater to both local end-users and foreign buyers. The emirate’s calm environment, upcoming hospitality projects, and supportive investment policies make it an increasingly attractive option for second homes and long-term investments.

Key Drivers Supporting the UAE’s Real Estate Growth

Multiple factors have contributed to the real estate sector’s stellar performance in early 2025. The UAE’s introduction of flexible residency policies, including golden visas and retirement residency options, has attracted high-net-worth individuals and long-term investors. Foreign direct investment in the property sector continues to grow, supported by a transparent regulatory framework and stable macroeconomic outlook.

Strong rental yields, attractive payment plans on off-plan properties, and rising demand for community living are also pushing transaction volumes higher. The UAE’s continued investment in transport, tourism, and digital infrastructure creates long-term value for developers and buyers.

Developers across all emirates are launching new projects to meet growing demand, especially in areas focused on affordability, smart city planning, and sustainability. These projects are expected to shape the next phase of real estate development in the country.

Optimistic Outlook for UAE Property Market in 2025

The first-quarter results suggest that the UAE real estate market is well-positioned for continued growth in the months ahead. Several high-profile residential and commercial developments are scheduled for launch in Q2 and Q3 of 2025. Interest from international markets remains strong, particularly from investors in Europe, Asia, and the Gulf.

As developers expand their offerings and more buyers take advantage of residency-linked investments, the UAE is set to maintain its place as one of the world’s most promising real estate markets. The combination of lifestyle appeal, stable returns, and government support positions the sector for sustained expansion throughout the year.