The UAE’s property market is experiencing remarkable growth, with real estate transactions exceeding Dh239 billion in the first quarter of 2025. This surge highlights the country’s appeal to both investors and homeowners, reinforcing its position as a global real estate hotspot.

Dubai remains the frontrunner, accounting for Dh193 billion of the total transactions. However, significant activity is also occurring in Abu Dhabi, Sharjah, Ajman, and Ras Al Khaimah, indicating a diversification in the market’s geography and buyer interest. More than 94,000 transactions, including sales and mortgage agreements, were recorded from January to March, reflecting strong demand driven by flexible regulations and expanding infrastructure.

“Real estate in the UAE has become a reflection of the country’s larger progress—not just economic, but cultural and social,” stated Talal Al Dhiyebi, Group CEO of Aldar Properties. The company reported Dh8.9 billion in sales for Q1, a 42% increase compared to the previous year, with over 95% of its portfolio now occupied.

While Dubai led the way with 58,000 transactions worth Dh142 billion, Abu Dhabi showed a notable increase in mortgage activity, indicating growing interest from end-users. The capital recorded Dh25.3 billion in property deals, with mortgages rising by 49% year-on-year, according to the Abu Dhabi Real Estate Centre.

Analysts emphasize that the first quarter’s performance is significant, demonstrating sustained demand across a wider variety of locations and property types, rather than just luxury developments or short-term investments. The combination of increasing mortgage volumes, off-plan purchases, and record sales by developers suggests a maturing market supported by long-term residents and institutional buyers.

The implications for businesses in construction, interior design, and home services are evident, as increased transactions lead to heightened activity across the entire value chain. For property investors, the strong performance in Q1 signals a clear message: demand continues to grow.

As 2025 progresses, the UAE’s property sector appears well-positioned as a cornerstone of economic growth, now expanding well beyond the iconic skyline of Dubai.