Strong demand, investments drive UAE’s real estate market

Limited levels of available supply, infrastructure development delivery and alternative assets including last-mile logistics and data centres is driving the UAE's real estate performance in 2095, according to JLL's Middle East and Africa Market Review and Outlook 2025.

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‘As key global macroeconomic headwinds began to ease over the course of 2024, the UAE was the only GCC country to record growth in oil-GDP despite ongoing oil production cuts. Non-oil GDP growth has been particularly strong in the UAE, which recorded growth rates of 4.78 in 2024, and is expected to accelerate to 4.83 in 2025.

Taimur Khan, Head of Research MEA at JLL, said: “With inflation rates stabilising and a robust labour market, the real estate sector is witnessing robust demand across key sectors in both Dubai and Abu Dhabi. GDP growth has been ‘amongst the strongest in the UAE as compared to other GCC countries, which is a testament to the government's continued strategic efforts to attract investment.”

“In 2025, enabling the conversion of qualified non-freehold properties will drive demand across submarkets while new infrastructure projects and alternative assets is expected to propel real estate development in the UAE.” Although the MEA region's construction project market slowed in 2024, the UAE dominated construction project awards during the year, securing the largest share with 478, equivalent to $34 billion. In terms of sectors, the UAE excelled in residential and mixed-use projects, awarding $28.3 billion and US$ 4.6 billion, respectively, In the region’s pipeline UAE accounts for 20% of upcoming construction projects.