Population surge spurs UAE realty as record-breaking '25 winds down

The UAE property market is on track to end 2025 on a record-breaking note, with strong investor demand, rising population and robust economic fundamentals driving activity across key emirates.

- Issac John

Dubai's residential sector delivered another strong year. Cavendish Maxwell reports 55,300 transactions in Q3 2025. – FILE PHOTO

As 2026 begins, the UAE is entering a more balanced phase. Supply is rising, demand remains healthy, and market cycles are becoming more predictable. Analysts from Moody's and Fitch describe the period ahead as one of measured growth, rather than the exuberance of the last two years.

According to CBRE, Colliers, Cavendish Maxwell and Property Finder, the year delivered new highs in transactions and price growth, even as early signs of normalisation appeared.

The macro backdrop in 2025 was supportive. CBRE places GDP growth at around 4.9 per cent, fuelled by tourism, non-oil expansion and foreign investment. The UAE PMI stayed above 54, signalling steady business activity.

Population growth remained one of the biggest demand catalysts — ValuStrat notes Dubai added roughly 1,000 residents per day in early 2025, pushing housing needs across the city. Wealth migration also played its part, with Henley & Partners reporting nearly 10,000 millionaires moving to the UAE in 2025, boosting the top end of the market.