The UAE real estate sector continues its momentum, supported by strong demand and the strength of the economy

Abu Dhabi, 5 July / WAM / During the first half of this year, the real estate sector in the UAE continued to consolidate its position as one of the most dynamic and attractive economic sectors for investments globally, benefiting from the strength of the national economy, government policies supportive of business, and the continued flow of investors and capital, amid expectations of continued momentum during the second half of the year.

Real estate market indicators showed that the UAE is still one of the most prominent real estate destinations in the world, while officials and experts confirmed to “WAM” that the strong performance reflects the market’s transition to a more mature and sustainable stage after years of rapid growth, supported by strong economic fundamentals, according to reports of global consulting institutions.

A report issued last April by CBRE pointed to the strength of the UAE’s economic foundations, supported by strong financial reserves and a stable sovereign credit rating, with expectations of a strong recovery in GDP growth in 2027.

A Knight Frank report also confirmed that Dubai has strengthened its position among the most prominent global destinations for attracting wealth and real estate investments, while the UAE continues to advance among the fastest growing countries in the number of ultra-wealthy individuals.

In terms of market performance, the combined value of apartment and villa sales increased by 173.9% to exceed 84.4 billion dirhams, while the volume of transactions increased by 103% to reach 16,585 transactions compared to the same period last year, according to an analysis issued by the ADXinteract platform.

In Dubai, monitoring by the real estate brokerage company W Capital showed that market sales exceeded 286 billion dirhams during the first half, recording the second highest semi-annual sales in the history of the emirate after the first half of 2025, which recorded 326.6 billion dirhams, based on data from the Dubai Land Department.

Another report by the company revealed that the value of new real estate projects announced since the beginning of 2026 exceeded 275 billion dirhams, which reflects the continued momentum and the emirate’s entry into the largest semi-annual launch cycle of new real estate projects in its history.

Farhad Azizi, CEO of Azizi Group, said that the real estate sector has continued to consolidate its position as one of the most important engines of the national economy, based on the real demand for housing, the continued flow of foreign investments, and the high percentage of buyers relying on self-financing, which reflects the maturity of the market.

He added that the stable economic environment, flexible legislation, and long-term development vision have enhanced the UAE’s attractiveness for capital, expecting continued positive performance during the second half with more sustainable and balanced growth, so that competition gives preference to projects with quality planning, speed of implementation, strategic locations, and long-term investment value, supported by population growth, expansion of economic activities, and continued real demand for residential units.

He explained that these expectations are based on continued population growth with the support of long-term residency programs, the continued implementation of Dubai’s D33 Economic Agenda, and the expansion of infrastructure projects, especially in Dubai South and the vicinity of Al Maktoum International Airport, in addition to the expected improvement in real estate financing solutions, which will enhance the confidence of developers and investors in the coming years.

Hussein Salem, CEO of Ohana Real Estate Development Company, said that the market has entered a more mature stage, and growth has become based on long-term demand, pointing out that Abu Dhabi and Dubai have continued to record record levels in real estate transactions, which reflects the strength of the market and its ability to attract local and international investments.

He expected the positive performance to continue during the second half at a more balanced pace, with continued demand for studied residential communities, branded projects, and waterfronts, in parallel with the entry of new supply that achieves a healthy balance between supply and demand.

He stressed that market strength is based on structural factors that include population growth, the continued flow of foreign investments, long-term residency programs, government investments in infrastructure, diversification of the economy, and the expansion of real estate financing, which enhances market stability and gives preference to projects with proper planning and high-quality implementation.

Thomas Wan, founder and CEO of Refine, said that the UAE real estate sector continues to show high levels of flexibility, explaining that demand remains strong, but buyers have become more interested in the quality of the project, its location, the reputation of the developer, and the housing experience, which reflects the heightened awareness and maturity of the market.

He stressed that the success of developers during the next stage will depend on implementing projects that meet actual market needs, adopting thoughtful pricing strategies, and enhancing competitiveness in light of the continued growth of supply.

Sayed Mahrouz, CEO and CFO of Alpago Group, said that the real estate sector continues its strong performance during 2026, maintaining its position among the most attractive real estate markets in the world, thanks to the high demand, the success of the long-term development vision, the continuation of economic diversification, the increasing number of high-net-worth individuals, advanced policies for residency and investment, and the continued expansion of infrastructure, which has strengthened the country’s position as a destination for investment and long-term residence for individuals and companies.

He added that the market is likely to continue its activity during the remainder of the year, with continued demand for high-end residential communities, branded projects, sea destinations, and high-quality commercial assets, in light of increasing investor interest in long-term value, quality of life, and sustainability of assets.

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