Development output throughout the UAE has elevated because the begin of the last decade. After reaching a file $107.2 billion in 2024, forecasts present development will proceed at 4 per cent every year via to 2029.
Development accounts for 62 per cent of future pipeline initiatives throughout the UAE, forward of transport (12 per cent), energy (7 per cent) and water (5 per cent).
Blended-use initiatives lead UAE building pipeline at 42% share
Blended-use initiatives make up 42 per cent of the development pipeline, adopted by residential actual property (28 per cent), knowledge centres (9 per cent) and hospitality initiatives (4 per cent).
Residential building prices in Q2 2025 ranged from AED 4,200 per sqm for traditional villas to AED 11,000 per sqm for high-end villas.
Flats ranged from AED 4,300 per sqm to AED 9,500 per sqm. Business buildings value between AED 5,500-7,300 per sqm on the finish of H1 2025.
“The UAE building trade is in a interval of sturdy development and transformation, pushed by financial diversification, tourism and strategic infrastructure investments, notably in housing, transport and good cities. The sector is a key pillar within the ‘We the UAE’ 2031 imaginative and prescient, the D33 Financial Agenda, Dubai’s 2040 City Masterplan and Abu Dhabi’s Imaginative and prescient 2030. Abu Dhabi and Dubai dominate the UAE market, accounting for 85 per cent of the full worth of contracts awarded between 2020 and August 2025 – US$ 151bn in Abu Dhabi and US$ 129.9bn in Dubai,” Faisal Durrani, Associate – Head of Analysis, MENA mentioned.
Abu Dhabi and Dubai account for 85 per cent of the full worth of contracts awarded between 2020 and August 2025 – $151 billion in Abu Dhabi and $129.9 billion in Dubai.
In Dubai, building accounts for 75 per cent of challenge exercise. This contrasts with Abu Dhabi, the place building represents 23 per cent of contract awards, behind oil and gasoline initiatives (40 per cent). Oil and gasoline sectors make up solely 3 per cent of contract awards in Dubai.
Dubai has been the world’s primary recipient of FDI into greenfield initiatives for 3 years operating.
The UAE retained its place because the world’s primary recipient of FDI, relative to the scale of its financial system, for the second 12 months operating.
Initiatives in Dubai embody the Palm Jebel Ali, The Oasis by Emaar, Marsa Al Arab, Therme Dubai, Naia Island, Venice at DAMAC Lagoons and Parkwood and Deal with Residences in Dubai Hills Property. Dubai is increasing its Metro system by 15km by 2029 with building of the Blue Line.
“Steady strategic financial improvement is reshaping Dubai’s industrial actual property panorama and the most recent building output figures mirror the robust fundamentals of the market. Beneath the Dubai City Masterplan, town’s inhabitants is forecast to develop from 3.4 million in 2020 to five.8 million by 2040, underpinning the residential sector’s growth. As well as, round 8.2 million sqft of workplace house is underneath building and is because of be delivered by 2028, however our estimate is that demand is prone to exceed provide, additional supporting momentum within the building sector,” Moataz Mosallam, Associate – Mission & Improvement Providers, MENA mentioned.
Beneath the Dubai City Masterplan, town’s inhabitants is forecast to develop from 3.4 million in 2020 to five.8 million by 2040.
Round 8.2 million sqft of workplace house is underneath building for supply by 2028, however demand is prone to exceed provide.
The Dubai Financial Agenda D33 goals to make town one of many world’s prime 4 monetary centres by 2033 and double the scale of its financial system inside a decade. Dubai seeks to rank among the many prime three cities for funding, dwelling and enterprise.
“Efforts by the authorities to develop and diversify the financial system are finest mirrored within the stellar efficiency of the emirate’s property market, with robust development in workplace rents, mixed with file low emptiness ranges, whereas within the residential market costs are actually 22 per cent above the 2014 market excessive and town has earned the title of the busiest US$ 10 million properties market on the planet – an accolade it has retained since late 2022. And if that wasn’t sufficient, motels within the metropolis are working at one among, if not the best stage on the planet, with occupancy averaging 81.4 per cent throughout H1, supported by the world’s busiest worldwide airport,” Durrani mentioned.
Dubai property costs surge 22% above 2014 peak as market booms
Residential costs are actually 22 per cent above the 2014 market excessive. The town has earned the title of the busiest $10 million properties market on the planet – an accolade it has retained since late 2022.
Resorts function at one of many highest ranges on the planet, with occupancy averaging 81.4 per cent throughout H1, supported by the world’s busiest worldwide airport.
Abu Dhabi’s actual property market advantages from authorities development and diversification initiatives underneath the Abu Dhabi Financial Imaginative and prescient 2030. Initiatives embody a brand new 150km high-speed prepare hyperlink with Dubai, operational by 2030, and the deliberate 131km Abu Dhabi Metro.
“Some 890 residential models have been delivered in Abu Dhabi within the first half of 2025, and roughly 33,074 are underneath building and scheduled for supply by 2029. Flats are anticipated to comprise 71 per cent of this future provide pipeline,” Mosallam mentioned.
Workplace inventory in Abu Dhabi will surge in 2027, with practically 175,000 sqm of latest workplace house scheduled for supply.
This follows provide additions of roughly 51,000 sqm in 2025 and simply over 43,000 sqm in 2026.