The UAE property market maintained strong momentum in the third quarter of 2025, recording solid growth across the commercial, residential, hospitality, and industrial sectors, according to CBRE Middle East’s UAE Real Estate Market Review.
Despite limited new supply, the sector showed resilience amid increasing foreign direct investment, expanding non-oil activity, and record tourism numbers, reaffirming the UAE’s position as one of the world’s most stable and competitive economies.
CBRE projected the UAE’s GDP to grow by 4.9 per cent in 2025, supported by higher oil production and a 4.6 per cent rise in non-oil activity. The Purchasing Managers’ Index climbed to 54.2 in September, reflecting continued expansion and solid investor confidence.
Dubai’s residential sector saw 56,723 transactions worth AED 139.8 billion (USD 38.1 billion) in Q3, up 16 per cent year-on-year. Off-plan sales dominated the market, comprising 75 per cent of total transactions, while average prices rose 12.9 per cent.
Dubai Silicon Oasis and DIFC recorded the sharpest annual growth, signalling rising demand across both established and emerging communities.
In Abu Dhabi, real estate transactions reached a record 6,610 during the quarter, marking a 79 per cent annual increase. Prices and rents surged over 25 per cent, driven by limited supply and strong market appetite.
Dubai’s office market remained undersupplied, with average occupancy at 94 per cent and rents increasing 19 per cent year-on-year.
Demand in major free zones such as DIFC, Dubai Design District (d3), and DMCC continued to exceed supply, prompting occupiers to pre-lease early and developers to fast-track construction projects.
In Abu Dhabi, the expansion of Abu Dhabi Global Market (ADGM) resulted in near-full occupancy on Al Maryah Island, where average rents rose 8 per cent year-on-year and prime offices commanded substantial premiums.
With most remaining availability on Reem Island, occupancy has surged as ADGM-linked businesses seek nearby spaces.
Matthew Green, Head of Research MENA at CBRE, noted that while residential development continues to expand—easing rental growth in some areas—commercial supply remains limited. With major project handovers not expected before 2027, current landlord-favourable conditions are set to persist.
The UAE’s hospitality sector sustained strong momentum, with the country projected to welcome 27.6 million international visitors in 2025. Both Dubai and Abu Dhabi achieved year-to-date occupancy rates of 79 per cent, while revenue per available room (RevPAR) increased 12 per cent annually.
Abu Dhabi’s hotel revenues rose 19 per cent to AED 4.8 billion (USD 1.31 billion), and Ras Al Khaimah recorded a 9 per cent rise in hospitality income, supported by new resort openings and steady domestic travel.
Retail assets in Dubai and Abu Dhabi remained almost fully occupied, with 97 per cent and 95 per cent occupancy respectively. Rents increased by 5.3 per cent in Dubai and 3.3 per cent in Abu Dhabi, fuelled by population growth and tourism spending.
Prime retail space remains scarce, with new international brands such as Skims and Ulta Beauty opening outlets at Mall of the Emirates, replacing outgoing tenants as part of active asset management strategies.
The UAE’s industrial sector continued to expand, with average rents rising 18 per cent in Dubai and 12 per cent in Abu Dhabi. Large-scale logistics and manufacturing facilities are under development, with completions expected to begin in 2026.
CBRE’s analysis highlighted that the UAE economy remains on a firm growth trajectory, driven by diversification, steady energy revenues, and investor-friendly policies.
The combination of record tourism, high occupancy, expanding industrial activity, and tight commercial supply continues to strengthen the UAE’s standing as a premier global hub for business and investment.
