The UAE’s real estate market has long symbolized innovation and ambition—but 2025 marks a pivotal evolution. The focus has shifted from extravagance to intentionality, driven by investors who are more analytical, lifestyle-conscious, and sustainability-focused than ever.
Today’s buyers are asking deeper questions. They seek properties that blend flexibility, community, and tech-enabled living—homes that go beyond aesthetics and deliver long-term value.
Across Dubai, Sharjah, and Ras Al Khaimah, this new mindset is reshaping demand. Hybrid work culture, affordability, branded residences, and energy efficiency have become baseline expectations—not bonuses. Developers are adjusting to new regulations, urban planning initiatives, and smart city ambitions to meet this transformed market.
In this evolving landscape, Business Today Real Estate spoke with Hamdan Al Kaitoob, Senior VP of Sales & Marketing at Deyaar, and Cherif Sleiman, Chief Revenue Officer at Property Finder, for their insights on where the market is heading.
What Defines an Investment-Grade Property in 2025?
“In 2025, ‘investment-grade’ is about more than just location,” says Hamdan Al Kaitoob. “It’s about accessibility, operational efficiency, and readiness.”
Buyers now prioritize turnkey homes in strategic urban zones, near transport, schools, and healthcare. Features like keyless entry, high-speed connectivity, and flexible workspaces are pushing properties to the top of the list. These assets also deliver higher rental yields.
Tech-enabled property management is also a major value driver. “AI and IoT integration in buildings have cut operational costs by up to 20%,” Al Kaitoob notes, referencing findings from U.S.-based firm Primior. Deyaar’s Park Five reflects this with wellness-centered, sustainable, and community-driven design.
Community-Led Living: The New Investor Priority
Community-focused developments are now in higher demand than isolated housing options. “Buyers are drawn to mixed-use communities that offer residential, commercial, and recreational spaces,” Al Kaitoob explains.
Projects like Midtown, Park Five, and AYA Beachfront Residences in Umm Al Quwain are built around this concept. Shared amenities—from rooftop gardens to wellness hubs—are now viewed as essential investment factors, offering privacy without sacrificing social connection.
Flexibility Drives Value
“Flexible living is no longer a trend—it’s a necessity,” says Al Kaitoob. DWTN Residences, for example, merges five-star hospitality with residential ownership, appealing especially to high-net-worth individuals.
With hybrid work culture embedded in modern life, features like outdoor coworking zones and wellness amenities are in high demand. Park Five’s design caters to this new work-life blend with spaces serving both professionals and families.
Returns Go Beyond Rental Yields
While Dubai’s average gross yield of 6.31% remains attractive, investors are taking a more holistic view—seeking capital appreciation, resale potential, and sustainability certifications.
“Projects like ELEVE in Jebel Ali are built with this trifecta in mind,” says Al Kaitoob. Properties with smart features and green credentials are outperforming in long-term value retention.
Homes Must Now Be Multi-Functional
Homes today must serve as offices, wellness spaces, and sanctuaries all in one. At Deyaar’s Park Five, outdoor gyms and coworking areas reflect this demand. DWTN Residences goes even further, with AI meditation pods, yoga zones, and child-friendly playrooms, redefining modern urban living.
Mid-Market Segment Gains Ground
According to Cherif Sleiman from Property Finder, properties priced between AED 1–3 million are powering the market, with over 8,000 monthly transactions, twice that of sub-AED 1 million units.
This surge is backed by Dubai’s Affordable Housing Plan under its 2040 Urban Master Plan, creating long-term stability in the segment and increasing mortgage activity.
Apartment Preferences and Trends
Apartments dominate demand. Property Finder data shows:
- 34% of renters prefer one-bed units
- 30% look for two-beds
- Only 11% search for studios
This signals a preference for compact, functional layouts, particularly among first-time buyers and small families.
Ready Properties on the Rise
In the mid-tier range, buyers are leaning towards ready properties over off-plan investments. From January to May 2025, demand for ready homes rose 8%, while off-plan interest dipped 5% year-over-year. Buyers value immediate rental income and lower risk.
Emerging Communities Show Strong Growth
Several mid-market zones are outperforming expectations. According to Dubai Land Department:
- Culture Village, Wasl Gate, and Motor City saw 100%+ growth in transaction volumes
- Jebel Ali, Al Safa, Al Wasl, and Wadi Al Safa 3 each saw over 50% growth
Is Oversupply a Concern?
“Currently, no,” says Sleiman. “Supply is stable, especially in the apartment sector.” Demand remains high for studios, one- and two-bed units. Meanwhile, the villa/townhouse market is seeing new inventory catch up to demand.
International Buyers Fuel Mid-Market Surge
Buyers from the US, UK, India, Egypt, and Germany are driving interest in mid-market properties. There’s also a noted rise in ultra-high-net-worth individuals seeking premium assets, indicating Dubai’s broad appeal across investment tiers.
Sharjah and Ras Al Khaimah Are Rising Fast
RAK saw a 40% rise in buyer interest in H1 2025, boosted by high-profile projects like Wynn Al Marjan Island. Sharjah saw an even larger 63% spike, driven by infrastructure improvements, diverse developments, and affordable pricing.
Al Ain, while stable, remains a haven for long-term investors with a conservative outlook.
Investor Strategies Are More Diverse Than Ever
Off-plan deals still dominate, averaging 3,200 transactions per month, but they’re down from 6,000 in late 2024. Ready homes are gaining ground, with 2,400 monthly transactions, reflecting a growing demand for lower-risk assets.
Primary market properties now see 33% more activity than secondary ones, thanks to smarter layouts, better energy ratings, and resale potential.
The Informed Investor: What 2025 Demands
“The post-pandemic investor is smarter, more selective, and lifestyle-driven,” says Al Kaitoob. “They look at both emotional livability and economic return.”
Sleiman adds, “We’re seeing a new kind of buyer—strategic, balanced, and mindful of future-proofing.”
Conclusion: Vision, Value, and the Future of Investing
The UAE’s 2025 real estate landscape isn’t about chasing trends. It’s about anticipating lifestyle changes, investing in innovation, and understanding what truly matters to today’s buyers.
Whether it’s flexibility, community integration, or smart technology—savvy investors are seeking properties that align with the future of living.
In 2025, the smartest investment isn’t just about “what” or “where”—it’s about “why” and “for whom.”
What Smart Investors Are Prioritizing in 2025:
- Tech-forward, adaptable homes in well-connected areas
- Lifestyle-led, community-centric developments
- Affordable luxury within the AED 1–3 million sweet spot
- A balanced portfolio of off-plan and ready units
- Focus on rental income, resale value, and capital appreciation
