Dubai – United Arab Emirates – CBRE Middle East, the global leader in commercial real estate services, released its latest edition of the UAE Real Estate Market Review for the second quarter of 2025, highlighting the resilient performance of the UAE’s real estate market.
The UAE’s economy continues to demonstrate robust growth, with GDP projected to grow 5.1% in 2025, up from 3.8% in 2024. This positive trajectory is fueled by a rebound in oil production, strategic trade initiatives, and a thriving tourism sector, which saw a 7% year-on-year increase in international visitors to Dubai from January to May 2025. Investment in advanced technologies is also bolstering growth. While rising regional geopolitical tensions present potential downside risks, the UAE’s market fundamentals remain strong.
In a move to further support its residents and to further grow the real estate market, Dubai has launched a First-Time Home Buyer Program, offering incentives like preferential pricing and flexible payment options. This initiative aims to stimulate end-user demand and encourage homeownership.
Office Market: Strong Demand, Limited Supply
The Dubai office market remains strong, driven by tight supply and sustained demand, particularly from the Banking & Finance and Tech sectors. Average office rentals have increased significantly, rising by more than 20% year-on-year. Abu Dhabi’s office market is also flourishing, attracting new international businesses. With near-full occupancy rates and rising rental rates, both markets reflect the strength of demand.
Residential Market: Growth and Transformation
Dubai’s residential market shows continued growth in Q2, with property values rising nearly 14% annually to June 2025. While the market is becoming more segmented, with some communities showing stabilization, others, particularly premium areas, continue to experience significant appreciation, indicating market rebalancing. Abu Dhabi also saw strong performance, with average apartment values up 18% year-on-year and villa prices up nearly 14%.
The first half of 2025 saw Dubai’s residential sector experience a strong surge in transactional activity. Total transaction volumes surged by 23% year-on-year, supported by strong off-plan sales. The total value of residential sales reached AED 270 billion. The UAE is poised to attract a record number of millionaire migrants in 2025, fueling demand, particularly in the luxury and off-plan sectors.
Hospitality & Retail: Thriving Sectors
The UAE’s tourism sector is a key driver of economic diversification, projected to contribute AED 267.5 billion to GDP in 2025. Dubai leads the way with strong increases in international visitors and hotel performance. The retail market is also demonstrating resilience, with sustained demand and rising rents. New market entrants, like Primark, and the expansion of Dubai’s social gaming scene with venues like BrewDog and Kapitol, point to ongoing dynamism.
Industrial Market: Resilience and Growth
The UAE’s industrial market is attracting increasing investments, with a positive outlook for manufacturing and related activities. Strong rental growth and high occupancy rates indicate a landlord-favored market. The growing interest from global investors suggests potential for future development and a more liquid investment market in Grade A logistics assets.
Matthew Green, Head of Research MENA comments: “The diverse nature of the UAE’s economy, coupled with its forward-thinking policies, remains a key driver of our real estate market. We anticipate continued growth across multiple sectors through the remainder of the year, as the country continues to attract an increasing number of high-net-worth individuals.”.
About CBRE Group, Inc.
CBRE Group, Inc. CBRE, a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2024 revenue). The company has more than 140,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com
www.cbre.com
Send us your press releases to pressrelease.zawya@lseg.com
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
