The UAE’s economy continues to build strong momentum into 2025, bolstered by a rebound in oil output, robust performance in non-oil sectors, and increasing levels of foreign investment. Despite this positive trajectory, global trade uncertainties and regional geopolitical developments remain key downside risks to monitor.
In the residential real estate sector, both Dubai and Abu Dhabi maintained high levels of activity in Q2 2025, driven by strong investor interest and a steady stream of off-plan project launches. While this has supported ongoing price appreciation, there are emerging signs of price and rental value stabilization in select communities.
The office market in both emirates continues to benefit from tight supply and sustained demand, particularly from the finance and technology sectors. High occupancy levels and limited new inventory have contributed to robust rental growth.
Tourism remains a major pillar of the UAE’s economic diversification strategy, with rising visitor numbers delivering strong hotel performance and reaffirming the sector’s critical role in supporting non-oil growth.
Retail real estate faces a supply crunch, especially in prime mall locations, which has resulted in continued rental increases. The lack of short-term new supply suggests that the landlord-favorable conditions will persist in the near future.
Meanwhile, the industrial sector remains resilient. Strong interest from global investors and developers is fueling growth, especially in high-quality logistics assets, where rental values continue to rise.
