UAE Real Estate Market Overview
Market Size in 2024: USD 36.92 Billion
Market Size in 2033: USD 49.96 Billion
Market Growth Rate 2025-2033: 3.07%
According to IMARC Group's latest research publication, "UAE Real Estate Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The UAE real estate market size was valued at USD 36.92 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 49.96 Billion by 2033, exhibiting a CAGR of 3.07% during 2025-2033.
How Policy and Investment are Reshaping the Future of UAE Real Estate Market
- • Golden Visa Program Driving Long-Term Investment: The UAE's Golden Visa program has transformed property investment patterns, with buyers purchasing properties worth AED 2 million or more to secure 10-year residency. Recent reforms now allow investors to pool resources and accept mortgages without minimum completion requirements for off-plan properties. In Ajman alone, Golden Visa investors drove 69% of property valuations worth AED 177 million (USD 48.3 million) in August following April reforms, showing how residency incentives directly translate to real estate demand.
- • Record Transaction Volumes Breaking Historical Highs: Dubai registered 9,300 residential mortgage transactions in Q1 worth AED 20.4 billion, up 24% from the same period last year. Average sales prices jumped 20% to AED 1,597 per square foot, while rental prices surged 19% overall and villa rentals specifically increased 20% due to family relocations. With 44% of transactions happening in the secondary market, the UAE real estate sector is seeing unprecedented activity levels that signal sustained buyer confidence.
- • Tourism Boom Fueling Luxury and Hospitality Real Estate: Dubai welcomed 10.62 million international visitors by July, with the first half bringing 9.31 million tourists—a 9% year-on-year increase. This influx generated AED 33.5 billion in hotel revenues and is attracting approximately 6,700 millionaires to relocate to the UAE. Luxury developments in Palm Jumeirah, Downtown Dubai, and Abu Dhabi's Yas Island are capturing high-net-worth individuals seeking premium lifestyle properties, with short-term rental demand and branded residences seeing particularly strong momentum.
- • Dubai 2040 Urban Master Plan Creating New Development Zones: Launched in March 2021, the Dubai 2040 Urban Master Plan aims to double green spaces, establish five major urban centers (three existing and two new), and significantly improve infrastructure quality. The plan targets making Dubai "the best city to live in" by focusing on livability, sustainability, and efficient resource utilization, opening up vast new areas for residential, commercial, and mixed-use development that will reshape the emirate's property landscape.
- • Abu Dhabi Gaining Market Share with 40% Growth: While Dubai dominates with the lion's share, Abu Dhabi is rapidly catching up with 40% growth in the first half, now accounting for approximately 5% of overall demand. Buyer interest in new developments has risen nearly one-third every quarter between mid-2024 and mid-2025, demonstrating that the UAE is evolving beyond a single-city market into a multi-emirate real estate powerhouse with diversified investment opportunities.
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UAE Real Estate Market Trends & Drivers:
The UAE's real estate market is thriving on the back of strategic government policies that have fundamentally changed how international investors view property ownership. The introduction of long-term residency visas tied to property purchases worth AED 2 million has created a powerful incentive for buyers to commit to real estate rather than rent temporarily. Foreign freehold ownership rights, the launch of Real Estate Investment Trusts (REITs), and streamlined e-property transaction systems have removed historical barriers that once deterred international capital. These policy shifts aren't just attracting casual investors—they're drawing serious wealth, with thousands of millionaires choosing to relocate their families and establish permanent bases in Dubai and Abu Dhabi. The government's economic diversification initiatives following Expo 2020 have also created sustained demand for commercial, hospitality, and industrial properties beyond traditional residential segments.
Population dynamics are creating relentless pressure on housing supply across the UAE. With expatriates making up roughly 90% of the population, the country's safe environment, world-class infrastructure, and business-friendly ecosystem continue attracting global talent in finance, technology, tourism, and emerging sectors. Dubai rents jumped 16% year-over-year, with villa rental demand specifically rising 20% as more families relocate rather than single professionals. This demographic shift toward family units is changing the type of properties in demand—larger apartments, standalone villas, and properties in communities with schools and family amenities are seeing the strongest appreciation. The Golden Visa program has accelerated this trend by encouraging expatriates to purchase property for long-term residency rather than remain perpetual renters, diversifying market demand from pure luxury segments into mid-market and affordable housing categories.
Tourism and lifestyle positioning have become massive drivers for the UAE's real estate sector, particularly in high-profile developments that offer more than just living space. The influx of over 10 million tourists generates enormous demand for short-term rentals, branded residences, and vacation homes that deliver both personal use and investment returns. Hotel revenues exceeding AED 33.5 billion demonstrate the scale of hospitality infrastructure supporting this tourism boom, while iconic developments like Palm Jumeirah and Downtown Dubai have become global symbols of luxury living that attract international buyers regardless of residency plans. The convergence of real estate with hospitality is creating hybrid investment products—properties that function as primary residences part of the year and income-generating vacation rentals during other periods. This flexibility appeals to ultra-high-net-worth individuals who split time between multiple global locations while maintaining a UAE base for tax optimization, business operations, and lifestyle benefits.
UAE Real Estate Industry Segmentation:
The report has segmented the market into the following categories:
Property Insights:
- Residential
- Commercial
- Industrial
- Land
Business Insights:
- Sales
- Rental
Mode Insights:
- Online
- Offline
Breakup by Region:
- Dubai
- Abu Dhabi
- Sharjah
- Others
Competitive Landscape:
The competitive landscape of the industry has also been examined along with the profiles of the key players.
Recent News and Developments in UAE Real Estate Market
- Q1 2025: Dubai recorded 9,300 residential mortgage transactions valued at AED 20.4 billion, representing a substantial 24% increase compared to the same period last year. The surge reflects growing buyer confidence and improved financing accessibility, with both end-users and investors taking advantage of competitive mortgage rates to secure properties across various price segments.
- First Half 2025: Abu Dhabi's real estate market experienced 40% growth, with buyer interest in new developments rising nearly one-third every quarter between mid-2024 and mid-2025. The emirate now accounts for approximately 5% of overall UAE property demand, signaling a geographic diversification beyond Dubai's traditional dominance and creating new investment opportunities in the capital.
- August 2024 (Post-April Reforms): Following April regulatory changes that allowed pooled property investments for Golden Visa eligibility, Ajman saw Golden Visa investors drive 69% of property valuations worth AED 177 million (USD 48.3 million) in a single month. The reforms removed minimum completion requirements for off-plan properties and accepted mortgages of any amount, dramatically expanding the pool of eligible investors.
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