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UAE Property Market Update
Dubai remains the region’s deepest off-plan market, and its first-half cooling arguably improves the entry point for disciplined buyers. Off-plan captured roughly 71% of deals, giving investors a wide choice of projects, developers and payment structures. Volumes have eased from 2025’s record, and price growth slowed from 12% in January to under 4 percent by May. That looks like a shift from frenzy to selectivity. With fewer buyers chasing every launch, investors have more room to negotiate payment plans and to choose on location and developer track record. Pricing has not weakened: citywide averages reached AED 1,770 per sqft, up from AED 1,600 in 2025. The top end is also expanding, with 320 homes above US$10 million sold in H1, up 23% year-on-year. The opportunity lies in well-located, master-planned communities with credible delivery histories. Staged payments let capital go in gradually while the asset appreciates towards handover.
Abu Dhabi offers a different proposition; an earlier-stage market with stronger momentum. Residential unit sales reached AED 70.4 billion, against AED 25.3 billion in H1 2025, with off-plan accounting for 89% of sales value. Prices are following. Repeat sales prices rose 20% year-on-year for apartments and 12% for villas. Occupancy of 95% and a 13% rise in new lease prices point to tenant demand that should support rental returns once projects complete. Activity is concentrated in the island destinations. Hudayriyat led with AED 19 billion, followed by Saadiyat, Reem/Maryah and Yas, which gives investors clear zones to focus on. Emirati buyers committed AED 21.0 billion, against AED 8.9 billion a year earlier, which suggests strong domestic confidence rather than purely foreign speculation. Investors who buy now are positioning ahead of a market that is still maturing.
Both markets call for careful selection. Investors should favour proven developers, escrow-protected projects and locations with real end-user demand, rather than relying on further rapid price gains.
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About the author
richard bradstock
Founder & Managing Director
RPA’s founder, Richard has worked in residential development investment for 20 years and oversees the general running of the business ensuring the RPA Group retains true to its founding principles. Over his career Richard has built an incredible network of international property investors and like-minded industry professionals.
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