The UAE real estate market is experiencing a remarkable surge in the third quarter of 2025, driven by high office occupancy rates reaching 94% and impressive residential sales totaling $38 billion in Dubai, defying any signs of economic slowdown. This dynamic performance highlights the resilience of the UAE’s property sector amid broader economic growth, attracting significant foreign investments and solidifying its position as an attractive destination for both local and international investors.
The latest UAE Real Estate Market Review by CBRE Middle East illustrates the robust growth of the UAE real estate market in Q3 2025 across various segments, including commercial, residential, hospitality, and industrial. This growth comes despite a limited new supply of properties, indicating strong resilience driven by rising foreign direct investment and impressive non-oil economic expansion. With projections for a 4.9% GDP increase in 2025, the UAE continues to solidify its status as one of the most competitive economies globally.
Residential: Dubai defies seasonal trends as sales pass $38bn
Dubai’s residential sector has recorded a remarkable 56,723 transactions amounting to AED 139.8 billion ($38.1 billion) in the third quarter, marking a notable 16% increase year-on-year. Off-plan properties have taken the lead in this upswing, accounting for 75% of all transactions as property prices surged by 12.9% across the region.
The highest annual growth has been evident in Dubai Silicon Oasis and the Dubai International Financial Centre (DIFC), showcasing robust demand in both established and emerging communities. Meanwhile, Abu Dhabi has also witnessed significant growth, with transaction volumes hitting a historic 6,610—up 79% year-on-year—as both prices and rents experienced surges exceeding 25%.
Commercial sector: High occupancy and landlord-friendly dynamics
The commercial segment of the property market in Dubai remains notably undersupplied, with average office occupancy shooting up to 94% and rents rising by 19% year-on-year. Key free zones such as DIFC, Dubai Design District (d3), and Dubai Multi Commodities Centre (DMCC) are responding to increased demand, leading occupiers to expedite leasing and prompting developers to ramp up construction efforts.
In Abu Dhabi, the emergence of the Abu Dhabi Global Market (ADGM) continues to drive near-full occupancy on Al Maryah Island, where average rents have increased by 8% year-on-year. As businesses linked to ADGM seek space, occupancy in areas like Reem Island has risen significantly, demonstrating the strong demand in this evolving market.
Matthew Green, Head of Research MENA at CBRE, emphasized the ongoing commercial supply constraints: “The residential development pipeline continues to grow, with rising deliveries now starting to soften rental sector dynamics across some locations. However, commercial markets remain heavily supply constrained, and without significant handovers until 2027 at the earliest, the current landlord-friendly market looks set to continue.”
UAE hospitality: record visitor numbers and rising hotel revenues
The hospitality sector in the UAE remains vibrant, on track to welcome an anticipated 27.6 million international visitors in 2025. Both Dubai and Abu Dhabi have reported year-to-date occupancy rates of 79%, complemented by a 12% rise in revenue per available room (RevPAR).
Abu Dhabi’s hotel revenues soared by 19% to AED 4.8 billion ($1.31 billion), while Ras Al Khaimah experienced a 9% increase in hospitality revenues, bolstered by new resort openings and continued demand for domestic travel.
Retail and industrial: constrained supply, sustained demand
The retail market across Dubai and Abu Dhabi is reaching near full occupancy levels, standing at 97% and 95%, respectively. Rents have risen by 5.3% in Dubai and 3.3% in Abu Dhabi as a result of growing population and tourism-related spending.
Prime retail space remains in short supply, with new international brands like Skims and Ulta Beauty opening locations in the Mall of the Emirates, reflecting proactive asset management strategies during tenant transitions.
The industrial sector continues to grow vigorously, with average rents climbing by 18% in Dubai and 12% in Abu Dhabi. Major logistics and manufacturing facilities are currently under construction, with new completions anticipated to commence in 2026.
Economic outlook: sustained growth, strategic diversification
CBRE’s report underscores the solid growth trajectory of the UAE’s economy, supported by strategic diversification efforts, stable energy revenues, and favorable investor policies. The combination of thriving tourism, high occupancy rates, expanding industrial activity, and limited commercial supply reinforces the UAE’s reputation as a premier global hub for business and investment.