Market Reports

Abu Dhabi’s residential real estate market delivered a record-breaking performance in 2025, with transaction volumes and sales values reaching historic highs, reflecting strong buyer demand and heightened investor confidence. Total transaction volumes reached approximately 22,400 deals, up 55% year-on-year, while total sales value climbed to AED 73.2 billion. This performance was driven by robust end-user demand, sustained investor activity, and a wave of new project launches that kept the off-plan segment at the centre of market activity. Apartments dominated the market, accounting for 66.1% of transactions, while villas and townhouses also recorded strong growth, supported by demand from families and high-net-worth individuals seeking larger living spaces.

Dubai's residential real estate market concluded 2025 on a record-breaking note, with transaction volumes surpassing 200,000 and total values reaching AED 541.5 billion. Both off-plan and ready property segments outperformed 2024 levels, supported by robust investor appetite, strong end-user demand, and a steady stream of new project launches. Off-plan transactions accounted for 72.9% of total market activity, up from 69.3% in 2024, reflecting the market's increasing focus toward future developments. While this trend has driven growth, it has also created concentration risks, as the market has become heavily reliant on continued launch momentum and sustained buyer sentiment.

Saudi Arabia's economy continued to deliver robust performance in 2025, with real GDP expanding by 4.3% in the first nine months of the year, driven primarily by the non-oil sector, which grew by 5.1% year on year. Reflecting this strong momentum, the International Monetary Fund (IMF) revised its 2025 growth forecast for the Kingdom upward to 4%, with a similar expansion projected for 2026.

Dubai's office market delivered exceptional performance in 2025, characterised by surging prices, record transaction volumes, and robust rental growth, all supported by strong economic fundamentals and persistent supply constraints. The Emirate's business ecosystem expanded significantly, with the Dubai Chamber of Commerce registering 71,830 new member companies, pushing total active membership to 292,486, a 13.2% increase year-on-year.

Dubai's office market delivered a strong performance in Q3 2025, supported by robust economic fundamentals and ongoing business formation activities. Dubai Chamber of Commerce welcomed approximately 53,000 new member companies in the first nine months of 2025, up 4% year-on-year, and attracted 261 foreign companies, a 65.2% increase over the same period in 2024. This surge in business activity fuelled heightened demand for office space, with sales transactions reaching approximately 1,200, up 39.9% year-on-year, and transaction values climbing to AED 3.1 billion, reflecting 87.6% annual growth. The off-plan segment was the primary driver, with volumes rising 463.8% year-on-year.

Dubai’s investment landscape continued to flourish in the first half of 2025, reinforcing its status as the UAE’s leading economic hub. The Emirate attracted 526 greenfield foreign direct investment (FDI) projects, representing 86% of the national total and securing USD 3.03 billion in capital inflows. This growth was further supported by the Dubai International Financial Centre (DIFC), which recorded a 32% year-on-year increase in new business registrations, with 1,081 companies established. The Dubai office market also delivered an outstanding performance in H1’2025, reaching its highest sales activity in recent years. Approximately 1,900 transactions were completed, reflecting a 21.6% increase year-on-year. Meanwhile, the total value of office sales surged to AED 5.4 billion, marking an 83.9% rise compared to H1’2024.

Dubai's tourism sector has grown steadily over the past few years, benefiting from world-class infrastructure, a safe and diversified environment, and a strong calendar of events and cultural festivals. The market continued to perform strongly in 2025, supported by strong air connectivity, rising international visitation, and resilient hotel performance. Passenger traffic at Dubai's airports reached 95.2 million up by 3.1% compared to 2024, with international visitors climbing to 19.6 million, reinforcing the city's position as a leading hub for both leisure and business travel. Demand growth remains broad-based, supported by a diversified mix of source markets and an expanding ecosystem of events and experiences, while premium hotel openings have further enhanced Dubai's appeal to high-value international travellers.

Oman’s hospitality sector demonstrated robust performance in the first nine months of 2025, supported by strong domestic and international demand. Airport traffic reached 11.2 million passengers, while guest volumes in 3-5 star hotels rose to 1.7 million, representing a 9% increase compared with the same period last year. Occupancy levels strengthened further, reaching 52.8%, a notable 13.1% growth over 2024, signalling that the market is effectively absorbing demand even during shoulder months. Meanwhile, average room rates (ARR) remained broadly stable, indicating that hotels are focusing on maximising occupancy and optimising inventory utilisation rather than pursuing aggressive rate increases to drive revenue growth.

Dubai was officially recognised as the first Certified Autism Destination™ in the Eastern Hemisphere, demonstrating its commitment to accessible and inclusive tourism. The Emirate's safety credentials also received global recognition, with Dubai placing third and Abu Dhabi first in Numbeo's city-level safety index, reinforcing the UAE's position as one of the world's safest destinations.

Dubai’s retail and warehouse markets delivered a strong performance in Q3 2025, supported by resilient demand, constrained supply, and improving investor confidence. Retail sales activity accelerated sharply during the quarter, with transaction volumes rising quarter on quarter and total deal value surpassing the AED 1 billion mark for the first time in a single quarter, driven primarily by robust off-plan activity.

Executive Summary with Key Trends In the first half of 2025, Dubai’s retail market recorded around 500 sales transactions valued at approximately AED 1.4 billion. Overall transaction volume and value declined year-on-year by 17.3% and 1.8%, largely due to a slowdown in off-plan activity. In contrast, the ready retail segment performed strongly. On the rental side, overall contracts increased compared […]