Conversion of Non-Freehold Properties to Boost UAE Real Estate Demand
The UAE’s real estate market in 2025 is expected to be shaped by limited supply, infrastructure expansion, and the rise of alternative assets like last-mile logistics and data centers, according to industry estimates.
A report by JLL, a leading global real estate and investment management firm, highlights that the ability to convert qualified non-freehold properties will stimulate demand across different submarkets. Additionally, new infrastructure projects and alternative asset investments are set to drive real estate development across the UAE this year.
UAE Real Estate Performance
JLL’s Middle East and Africa Market Review and Outlook 2025 states that while the MEA construction project market slowed in 2024, the UAE secured the largest share of project awards, accounting for 47%—equivalent to $34 billion.
The UAE performed exceptionally well in residential and mixed-use projects, awarding contracts worth $28.3 billion and $4.6 billion, respectively.
Taimur Khan, Head of Research MEA at JLL, noted that with inflation rates stabilizing and a robust labor market, the real estate sector is witnessing strong demand in key industries across both Dubai and Abu Dhabi.
“Among GCC nations, the UAE has demonstrated some of the strongest GDP growth, reflecting the government’s ongoing strategic initiatives to attract investment,” he said.
Gary Tracey, Head of Project & Development Services UAE at JLL, added that despite rising construction costs, the UAE’s real estate sector is expected to sustain its growth in 2025, as reflected in solid order books and strong performance in residential and mixed-use developments.
“This highlights the market’s resilience and strength while emphasizing the importance of cost control and innovative strategies to ensure sustainable growth,” Tracey explained.
Strong Demand in Dubai
The report indicates that Dubai’s residential sector ended 2024 on a strong note, with sales transactions rising by 32% year-on-year, reaching AED367 billion.
Investor interest in off-plan properties remained high, making up nearly 60.7% of total transactions, valued at approximately AED223 billion.
To meet this demand, developers launched around 157,000 units in 2024, referencing data from Reizin.
Meanwhile, JLL reported that rental market growth rates declined by 15.7% annually, suggesting a potential stabilization in rental prices.
