The conversion of qualified non-freehold properties is expected to boost demand across various submarkets.
According to an industry report, the UAE’s real estate performance in 2025 is being driven by limited supply, infrastructure development, and alternative assets such as last-mile logistics and data centers.
The JLL report highlights that enabling the conversion of qualified non-freehold properties will stimulate demand across submarkets, while new infrastructure projects and alternative assets are set to accelerate real estate growth in the UAE this year.
UAE Real Estate Performance
Despite a slowdown in the MEA region’s construction market in 2024, the UAE led in construction project awards, securing 47% of the total, valued at $34 billion, according to JLL’s Middle East and Africa Market Review and Outlook 2025.
The report noted that the UAE excelled in residential and mixed-use projects, awarding $28.3 billion and $4.6 billion, respectively.
Taimur Khan, Head of Research MEA at JLL, stated that with inflation stabilizing and a strong labor market, real estate demand remains high across key sectors in both Dubai and Abu Dhabi.
“Among GCC countries, the UAE has recorded one of the highest GDP growth rates, reflecting the government’s continued strategic initiatives to attract investment,” he added.
Gary Tracey, Head of Project & Development Services UAE at JLL, pointed out that despite rising construction costs, the UAE’s real estate market is set to maintain its growth momentum in 2025, as reflected in strong order books and a thriving residential and mixed-use sector.
“This highlights the market’s resilience and strength while also emphasizing the importance of cost control and innovative solutions for sustainable expansion,” Tracey said.
Strong Demand in Dubai
Dubai’s residential market ended 2024 on a strong note, with sales transactions increasing by 32% year-on-year, reaching AED 367 billion.
Investor interest in off-plan properties remained high, accounting for approximately AED 223 billion, or 60.7% of total transactions.
Driven by strong demand, developers launched around 157,000 new units in 2024, marking the highest annual figure recorded, according to REIDIN data cited in the report.
JLL also noted that rental prices grew by 15.7% annually, though the pace of increase has slowed, suggesting potential stabilization in the short to medium term.
