Real Estate

The UAE’s real estate sector saw strong momentum in Q1 2025, with Dubai posting its highest-ever first-quarter sales performance and Abu Dhabi witnessing a strategic pivot toward high-value, ready properties, according to market insights released by Property Finder, the region’s leading property platform.

Dubai: Record-Breaking Surge in Ready Property Sales

Dubai recorded a total of 45,474 real estate transactions worth AED 142.7 billion, reflecting a 22% year-on-year increase in transaction volume and a 30% rise in value. The ready property segment stood out with 20,034 transactions worth AED 87.5 billion, marking a 21% growth in volume and a 34% surge in value over Q1 2024 – setting a new quarterly benchmark for the segment.

The off-plan market also remained strong, contributing 56% of total sales, with 25,440 transactions valued at AED 55.2 billion. These figures highlight robust investor confidence in Dubai’s long-term development pipeline and increasing shifts from renting to ownership, driven by rising rental prices.

Abu Dhabi: Maturing Market Preferences

Abu Dhabi’s real estate market demonstrated strategic maturity, with total transaction value rising by 75% year-on-year and a 9% increase in transaction volume, largely due to substantial commercial deals and growing interest in completed homes.

In Q1 2025, Abu Dhabi registered 2,496 transactions worth AED 9.6 billion, of which 1,164 were ready property sales, making up 47% of all transactions. The ready market’s value surged 75% year-on-year, while residential-ready transactions climbed 5% in volume and 33% in value, highlighting the emirate’s shift toward quality, move-in-ready assets.

Key Takeaways:

• Dubai’s ready market outperformed historical records, with value increasing 34% YoY.

• Off-plan transactions in Dubai hit a decade-high for Q1, accounting for 56% of total sales volume.

• Abu Dhabi’s existing market comprised nearly half of the total market value, with rising interest in residential and commercial properties.

• Residential-ready homes in Abu Dhabi accounted for 88% of volume and 60% of value within the existing segment.

Strategic Developments Driving Growth

Cherif Sleiman, Chief Revenue Officer at Property Finder, highlighted factors supporting the market's performance:
“This year remains strong, particularly in Dubai where investor confidence in long-term capital appreciation remains high. Abu Dhabi’s evolving buyer behavior shows growing interest in quality, ready-to-move-in homes. From an international perspective, global policy shifts and currency depreciation are further enhancing the UAE’s real estate appeal.”

Sleiman also pointed to forward-thinking initiatives such as the Dubai Real Estate Alliance and the Dubai Land Department’s (DLD) collaboration with VARA to enable property tokenisation and fractional ownership, which are democratizing investment access and supporting the market’s continued evolution.

Conclusion

Both cities demonstrate complementary strengths—Dubai’s record-breaking transaction volumes and Abu Dhabi’s maturing buyer preferences—and the UAE real estate market enters 2025 with resilience and adaptability. The sector remains well-positioned as a global investment hotspot supported by technological innovation and proactive regulatory frameworks.

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