The United Arab Emirates’ real estate market is set up for long-term growth, thanks to proactive initiatives and strong economic indicators. In 2023, the UAE received $30.7 billion in foreign direct investment (FDI), making it the world’s third-largest FDI recipient.
Notably, Dubai has retained its position as a leading destination for greenfield FDI projects, outperforming big cities such as London and New York. The real estate market has seen exceptional activity, with Dubai having 166,400 sales worth Dh634 billion ($172.6 billion) in 2023.
Although at a slowed rate compared to past years, property prices and rents are predicted to climb, and developers are making large financial responses to this need. Deyaar Development expects Dh4 billion in sales, consequently it intends to start five additional projects valued Dh8 billion ($2.17 billion) in 2025. RAK Properties is additionally seeking to present twelve projects worth Dh5 billion during the same year.
Key Strategies Driving UAE’s Real Estate Growth
1. Dubai Real Estate Sector Strategy 2033
This strategy was launched by the Dubai Land Department, aiming to double the real estate sector’s contribution to the emirate’s GDP to AED 73 billion and increase the market size to AED 1 trillion by 2033. The key goals include:
- Increasing real estate sector contribution to GDP from its current 5.4%.
- Encouraging 100% foreign ownership across freehold zones.
- Expanding affordable and mid-range housing alongside luxury developments.
- Implementing green building standards to meet net-zero emissions by 2050.
- Strengthening market transparency through digital transaction tracking and investor protections.
This plan aims to position Dubai among the top three global cities by increasing foreign trade to AED 25.6 trillion ($7 trillion) over the next decade.
2. Tax Benefits and Investor-Friendly Policies
The UAE remains one of the few major real estate markets offering tax-free property ownership. Unlike markets such as London or New York, UAE property buyers benefit from:
- Zero capital gains tax on property resale.
- No inheritance tax, making UAE properties ideal for wealth preservation.
- High rental yields, averaging between 6-9%, far exceeding UK and European averages.
- Golden Visa program, allowing property investors to obtain 10-year residency with a minimum investment of AED 2 million ($545,000).
These policies have made Dubai and Abu Dhabi increasingly attractive to international investors.
3. Mega Projects
Dubai and Abu Dhabi continue to launch some of the world’s most ambitious real estate projects. Here are five key developments driving investor interest in 2025:
- Palm Jebel Ali Project (Dubai) – Revived in 2023, this mega island project is twice the size of Palm Jumeirah, with 80 hotels, luxury waterfront homes, and a focus on smart infrastructure.
- Ohana by the Sea Project (Abu Dhabi) – A luxury seafront villa community designed to meet the increasing demand for exclusive waterfront properties, expected to become one of Abu Dhabi’s most top rated residential areas.
- Dubai Creek Harbour Project – Developed by Emaar Properties, it will cover 6 square kilometers and include the world’s next tallest tower, over 78,000 residential units, and a high-end marina. The expected completion date is 2030.
- Saadiyat Lagoons Project (Abu Dhabi) – A $5 billion environmentally friendly residential project that focuses on sustainable lagoon living through energy-efficient villas and nature reserves.
- Al Reem Island Expansion (Abu Dhabi) – A 6.5 million sqm masterplan featuring high-end residential zones, premium commercial spaces, and waterfront leisure areas.
Buyers of real estate, pension funds, sovereign wealth funds, and international institutional investors are all showing interest in these megaprojects because of the potential for capital appreciation in the long run.
Who Is Investing in UAE Real Estate?
The UAE’s real estate market has witnessed significant interest from a diverse range of international investors. British investors have demonstrated a notable increase in their presence, attracted by the opportunity to acquire second homes in a favorable climate, the absence of property or inheritance taxation, and higher rental yields in comparison to cities such as London.
Other significant investor groups include Indian nationals, who are drawn to the UAE’s solid trade relations and business opportunities; Chinese investors, who are seeking stability amid domestic market fluctuations; Russian buyers, who are investing in premium properties as secure assets; and European investors from countries such as Germany, France, and Italy, who are attracted to the UAE’s stable economy and investor-friendly regulations.
Why UAE’s Real Estate Market Will Continue to Grow
One major development key has been the influx of foreign investors—especially from Europe. Strategic measures by the UAE, government-supported purchaser incentives, tax-free property ownership, and world-class mega-developments are confirming its ranking as among the most profitable real estate markets worldwide.
Together with large-scale developments, the Real Estate Strategy 2033 guarantees UAE’s popularity for foreign investors. In conclusion, the UAE’s real estate market is projected to continue on a positive trajectory in the near future.
David Prior
David Prior is the editor of Today News, responsible for the overall editorial strategy. He is an NCTJ-qualified journalist with over 20 years’ experience, and is also editor of the award-winning hyperlocal news title Altrincham Today. His LinkedIn profile is here.