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UAE Real Estate Market Review Q2 2025
Healthy Q2 sets stage for summer, despite June slowdown
July 22, 2025 10 Minute Read
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Key Takeaways:
- The UAE economy continues to show strong momentum, with upgraded growth forecasts for 2025, driven by a rebound in oil production, resilient non-oil sectors, and rising foreign investment. However, geopolitical tensions and global trade uncertainties still pose downside risks.
- Residential markets across Dubai and Abu Dhabi remain very active, with sustained off-plan launch activity during Q2 supported by strong investor demand, which in turn continues underpin price growth. However, some signs of moderation across both sales and rental values are now emerging across certain communities.
- Office markets in both cities continue to experience a combination of high occupancy and strong rental growth, supported by limited delivery of new supply and sustained demand from across the finance and tech sectors, amongst others.
- Tourism remains a key economic pillar for the Emirates, with visitor numbers rising year-on-year, driving positive hotel performances across the country, reinforcing the sector’s importance to economic diversification and non-oil growth.
- Retail sector suffering from lack of available space across the Emirate’s prime mall assets, resulting in sustained rental growth. Limited short-term pipeline of new supply means a continuation of a Landlord’s market for the foreseeable future.
- Industrial markets remain resilient, amidst rising international investor and developer interest supporting continued rental growth, particularly across prime logistics assets.
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