Dubai and Abu Dhabi real estate surged in 2025, fueled by high demand, limited supply, and foreign investment, with strong price growth, rising rental yields, and a shift toward sustainable, tech-driven developments.

Dubai and Abu Dhabi are seeing strong real estate growth in 2025, driven by high demand, limited supply, and investor interest. Dubai offers tax-free returns, high rental yields of 5% to 8%, and attractive residency incentives, while Abu Dhabi reported AED142 billion in transaction value, a 44% rise from 2024, with foreign buyers accounting for 62% of residential sales. Prices rose sharply, and rental yields increased, supported by robust construction—Dubai completed nearly 48,000 units. The market is shifting toward sustainable, tech-integrated buildings, with green certifications becoming essential. Logistics, data centers, and smart infrastructure are emerging as key growth sectors, reflecting a broader move toward innovation and resilience in the UAE’s real estate landscape.