UAE Real Estate Market Maintains Robust Growth in Q2 2025
Q2 in Numbers: Across the Emirates and Sectors
Residential Market: Rising Values and Rental Returns
In Dubai, property prices rose by 3% during Q2, bringing the average rate to AED 1,582 per square foot an 18% increase compared with the same period last year.
According to CBRE, the residential sector across the UAE saw values jump nearly 14% year-on-year as of June 2025. Transaction volumes soared too, up 23%, with total residential sales in H1 2025 hitting AED 270 billion.
In Abu Dhabi, the ValuStrat Price Index rose 2.2% quarter-on-quarter and 8.1% year-on-year, a clear sign of accelerated growth in both capital values and demand. Apartments rose by 1.7% alone, with villa prices climbing by 2.6%.
Rental Market: Appetite Remains Intact
Abu Dhabi experienced stronger rental upside than Dubai, with apartment rents up 2% QoQ and 12.5% YoY, while villa rentals grew 7%.
In Dubai, rent growth has softened but remained positive. Apartment rents rose 9% year-on-year, and villa rents increased 5.7%, signaling ongoing demand.
What’s Fueling the Resilience?
Several key drivers are at work simultaneously:
Population and Investor Influx
The UAE continues to attract expatriates and investors. Forecasts suggest an influx of high-net-worth individuals in 2025 alone. This rising demand makes properties both luxury and mainstream an attractive asset.
Strong Economic Fundamentals
With oil-sector recovery, pro-business policies, and growing diversification, the UAE presents an appealing macroeconomic backdrop. CBRE notes the economy’s resilience and investor confidence as foundational to real estate momentum.
Off-Plan Launches and Forward Demand
New developments across Abu Dhabi and Dubai are selling quickly—sometimes within days. This shows buyers are investing early, confident that the returns will follow.
Commercial & Industrial Growth
It's not just homes office and logistics spaces are in demand. Office rentals are up, and industrial assets are drawing international developer interest. Industrial rental markets, particularly, are expanding due to strategic logistics needs.
Developer Strength & Profitability
Emaar Properties, a leading indicator, reported a 33% jump in profit in H1 2025, supported by a 46% increase in property sales value to AED 46 billion. Their sales backlog and confidence in future projects also surged by 62%.
What This Means for Homebuyers, Investors & Developers
For Homebuyers
If you're looking to buy, Q2 results say one clear thing: the market is moving, not cooling. Whether you're buying now or planning your next step, you’re investing into strong fundamentals and growing demand means liquidity and pricing power remain in play.
For Investors
The rise in residential values, steady rental yields, and developer momentum reinforce Dubai and Abu Dhabi as reliable long-term targets. Both capital appreciation and rental income remain attractive, especially for strategically selected properties.
For Developers
Quality, transparency, and timely delivery remain differentiators. With high-growth demand across segments, competing on value and finish, especially in mid-market segments, will define success.
Final Reflections
Q2 2025 is shaping up to be more than just a statistical win for the UAE real estate market it feels like validation. Across cities, sectors, and asset types, growth is live and palpable. Off-plan buyers are confident, investors are active, and developers remain bullish.
At Harpreet Real Estate LLC, we believe it’s not just about numbers—it’s about people. Whether you’re searching for a home, expanding your property portfolio, or want insight into Q3 trends, our commitment remains to guide you with credibility, honesty, and loyalty.
If you'd like a snapshot comparison of performance by asset class or insights on the next best areas to watch just let me know.
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