The UAE real estate sector maintained its robust momentum in an upward trend in Q3 2025 of a year because of the strength in the economic fundamentals, increased investor confidence, and one of the busiest development pipelines in the world. According to new statistics released by Colliers, Dubai, Abu Dhabi, Al Ain as well as the Northern Emirates are recorded to have shown extraordinary performance in terms of sales, rents, supply and significant project launching.
To investors, end users, and institutional buyers, Q3 2025 restates the UAE as a highly reliable, stable and profitable property market in the world.
UAE Real Estate Market: Q3 2025 Overview:
The UAE property market was registering good returns in residential, office and mixed-use areas. The demand surpassed supply in some of the key regions which were assisted by:
Increased population growth:
Infrastructure massive investments.
Enhancing pipeline development.
Healthy off-plan sales.
Increasing rental returns in big cities.
Abu Dhabi was able to remain on a consistent long-term growth trajectory, whereas Dubai remained on its record-breaking growth spurt with new launches and an increasingly sophisticated investment environment.
Dubai Real Estate Market: Demand, Prices and Rising in the Office:
Residential Supply and New Launches.
Dubai completed 8,100 apartments and 1,650 villas in the third quarter of 2025. Although the process of villa handovers was moderated in contrast to Q2, the release of 34,000 new places in the quarter is an indicator of sustainable development of pipeline in major master communities.
Rental Market Trends:
The rental performance of Dubai was also good because the market entered the more balanced phase:
Apartment rents: +2% QoQ, +5% YoY
Villa rents: +2% QoQ, +7% YoY
The recent trends continued to compete on prices in favor of increased tenant occupancy.
Sales Price Performance:
The sales market of Dubai has been extremely high, with great investor demand and favourable payment plans:
Apartment prices: +3% in Q3, +13% YoY
Villa prices: +4% in Q3, +14% YoY
The sales off-plan prevailed with the backing of flexible payment scheme and government schemes- such the First-Time Home Buyer Programme, which was initiated in July 2025. This project will provide favorable prices and special mortgages on the units to a maximum of AED 5 million, and installments on the fees charged by DLD. The expansion of tokenisation and REIT also contributed to widening the investor participation.
Dubai Office Sector Surge:
The office market in Dubai remained on a fast growth path:
Quarterly rental rates in Business Bay, DIFC, JLT, Sheikh zayed Road, Bur Dubai and Barsha Heights were between 3 and 7 percent.
Rental growth was 14-32% per annum.
More than 2 million sq.ft of new office space was announced – headlined by Business Bay, as a response to global and regional corporate occupier demand.
Abu Dhabi Real Estate Market: Sales are on a Record and Rents are increasing.
New Supply and Landmark Announcements.
In Abu Dhabi 1,400 new units were delivered in Yas Island, Jubail Island and Al Raha Beach. New mega- announcements consisted of:
One of the Masdar City communities by Taraf and Masdar.
Four season private residences Saadiyat Island.
The Fahid Island Resorts on Fahid Beach.
The housing authority announced 40,000+ new homes in 13 new communities.
Rental Performance:
Abu Dhabi rents shot up by a great deal
Apartment rents: +5% QoQ, +16% YoY
Mid and low-end segments had 10-30 percent yearly growth.
Prime apartments rose 5%-11% QoQ
Villa rents: +2%-11% QoQ, +3%-18% YoY
Record Breaking Sales Process:
Abu Dhabi registered almost 6,500 house deals- one enormous
233% quarterly increase
175% annual increase
The sales of apartments and villas/townhouses of more than 4,000 and 885 units respectively increased and the sales of the completed units increased 32 percent per year.
Price Growth:
Apartment prices: + 8% QoQ, to + 28% YoY.
Villa prices: +7% in Q3, +25% YoY
The office market was also extremely tight, with the Al Maryah Island close to full occupancy at AED3,000 and above per sqm fitted Category A space.
Northern Emirates and Al Ain: Good Initiatives and Consistent Returns:
In Q3, more than 13,000 new units were announced in the Northern Emirates including:
6,600 units in Ras Al Khaimah
5,300 in Sharjah
700 in Umm Al Quwain
Key Launches:
Al Hamra Greens (RAK)
Miraggio by Al Marjan Island (RAK).
Masaar 3 by Arada (Sharjah)
Rental and Sales Trends:
Apartment rents: +3% QoQ, +12% YoY
Sharjah and RAK were the leaders with +4% growth per quarter.
RAK apartment prices: +4% QoQ, +18% YoY
Sharjah prices: +3% QoQ, +12% YoY
RAK 2030 Vision is already changing the emirate, as its population will increase to 650,000 by 2030 (currently being 400,000), which makes it more attractive to long-term investment.
Al Ain Market Update:
New leasing contracts: +5%
Apartments rental: to +9 percent per year.
Villa rents: +3% YoY
Five other new residential developments (10,500 units) were announced.
Apart from the previously discussed Al Wadi Commercial Complex, which is scheduled to begin operations in Q1 2026, the retail activity is likely to increase further.
The Implication of this to Investors:
Across the UAE, Q3 2025 highlights:
High rental rates in large cities.
The attractive off plan project launching.
Increasing the supply corresponded with high levels of end-user demand and investor demand.
Constant price growth.
Great demand of office space by companies.
Affordability through government efforts.
The UAE is one of the best markets globally where investors seeking stable and long-term capital growth as well as high rental returns can be found.
Conclusion:
The performance of the UAE real estate market in Q3 2025 can prove that it is a hot spot in real estate investment worldwide. Following the key launches, increasing rents, high sales volumes, and continuous price increase in Dubai, Abu Dhabi, and the Northern Emirates, the perspectives in the following quarters are extremely optimistic.
When you are intending to invest, renovate your home, or venture into high performing off-plan investments, it is high time you do it.
News Source – https://www.arabianbusiness.com/industries/real-estate/uae-real-estate-sees-strong-q3-performance-as-dubai-and-abu-dhabi-record-gains-across-sales-rents-and-new-supply
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