The UAE real estate market continued to perform across residential, office, and mixed-use sectors in the third quarter of 2025, according to Colliers’ Q3 2025 UAE Real Estate Market Report released this week.
Abu Dhabi recorded nearly 6,500 residential transactions in Q3 2025, representing a 233 per cent increase quarter-on-quarter and a 175 per cent rise year-on-year. Off-plan sales dominated with over 4,000 apartments and 885 villas and townhouses sold during the quarter.
The emirate delivered approximately 1,400 new residential units in Q3, concentrated in Yas Island, Jubail Island and Al Raha Beach, the report said.
Northern Emirates launch 13,000 residential units as RAK targets 650,000 population
Abu Dhabi’s local housing authority announced 13 new residential communities that will collectively deliver 40,000 homes and plots, with six communities comprising more than 14,000 units planned within Abu Dhabi Region.
Apartment prices grew 8 per cent quarter-on-quarter and up to 28 per cent year-on-year, while villa prices rose by approximately 7 per cent during Q3 and 25 per cent annually. Completed UAE property transactions performed with over 1,500 sales, indicating a 10 per cent increase quarter-on-quarter and 32 per cent year-on-year.
Residential rental rates recorded upward movement in Abu Dhabi. Apartment rents in the UAE capital increased by an average of 5 per cent quarter-on-quarter and 16 per cent year-on-year, with the mid- and low-end segments showing annual gains of 10 per cent to 30 per cent.
Prime and high-end apartment rents rose between 5 per cent and 11 per cent during the quarter and 11 per cent to 25 per cent annually, while villa rents grew 2 per cent to 11 per cent over Q3 and 3 per cent to 18 per cent year-on-year.
Development announcements included a new residential community Masdar City by Taraf and Masdar, Four Seasons Private Residences on Saadiyat Island and Fahid Beach Terraces on Fahid Island.
Dubai’s real estate market delivered 8,100 apartments and 1,650 villas in Q3 2025, reflecting a moderation in villa handovers compared to the previous quarter. Approximately 34,000 units were announced in Q3, signalling a flow of supply.
Dubai’s rental market moved into a balance phase, with apartment rents rising 2 per cent quarter-on-quarter and 5 per cent annually, and villa rents increasing 2 per cent during the quarter and 7 per cent year-on-year.
Sales prices continued their ascent, with apartment and villa prices rising 3 per cent and 4 per cent respectively in Q3 and 13 per cent and 14 per cent year-on-year. Off-plan sales dominated activity, supported by payment plans and government initiatives.
The First-Time Home Buyer Programme, launched in July 2025, offers pricing and mortgages for off-plan units up to AED 5 million, along with instalment payment options for DLD fees. Tokenisation and REIT expansion continue to reshape Dubai’s investment landscape.
The Abu Dhabi office sector remained driven by corporate relocation activity, limited premium supply and business confidence. Al Maryah Island maintained near full occupancy, with fitted Category A rents exceeding AED 3,000 per square metre, while the micro-offices concept attracted demand with rates surpassing AED 4,500 per square metre.
Dubai’s office market registered rental gains, with increases quarter-on-quarter across all monitored districts such as Business Bay, DIFC, JLT, Sheikh Zayed Road, Bur Dubai and Barsha Heights, rising between 3 per cent and 7 per cent. Annual growth ranged from 14 per cent to 32 per cent.
Over 2 million square feet of new office space was announced during the quarter in Dubai, led by developments in Business Bay.
Q3 2025 saw project launch activity across the Northern Emirates, with approximately 13,000 new residential units announced. Ras Al Khaimah accounted for 6,600 units, Sharjah for 5,300, and Umm Al Quwain for 700.
Key releases included Al Hamra Greens and Miraggio on Al Marjan Island in RAK, and Masaar 3 by Arada in Sharjah. Limited handovers took place, mainly Danah Bay Phase 1 in RAK and Zorah Beach Resort in Ajman, though close to 7,700 units are scheduled for completion in Q4.
Rental growth remained with average apartment rents increasing 3 per cent quarter-on-quarter and 12 per cent annually. Sharjah and RAK led growth during the quarter at 4 per cent, with Ajman following at 2 per cent.
Ras Al Khaimah property prices climb 18% annually under Vision 2030 framework
RAK recorded 4 per cent increase quarter-on-quarter and 18 per cent annual apartment price growth, while Sharjah saw prices rise 3 per cent during the quarter and 12 per cent annually. RAK’s transformation continues to accelerate under the RAK Vision 2030 framework, with population expected to grow from 400,000 to 650,000 by 2030.
Projects on Al Marjan Island and the activation of the 3-million-square-foot RAK Central district continue to cement the emirate’s position as an investment destination.
Sharjah’s rental market is moving toward stability following the introduction of the Sharjah Rental Index, while master-plan communities such as Maryam Island, Masaar and Aljada continue to command rents.
Al Ain maintained upward movement in Q3, with new leasing contracts rising around 5 per cent over previous agreements. Apartment rents grew by up to 9 per cent annually, with villa rents increasing by around 3 per cent year-on-year.
UAE retail leasing recorded gains, particularly in F&B, while Al Ain Municipality’s new Al Wadi Commercial Complex, scheduled for completion in Q1 2026, is set to expand the retail offering. Five new local housing projects comprising roughly 10,500 units were announced during the quarter.
