The UAE’s residential real estate sector is projected to grow at a compound annual growth rate (CAGR) of 2.66% between 2025 and 2029, according to the latest industry data released by Statista. This forecast reflects continued investor confidence, driven by strategic urban planning and robust government initiatives that support real estate development across the emirates.
The sustained upward trajectory highlights the resilience and maturity of the UAE real estate market, with long-term infrastructure projects, economic diversification, and favorable regulatory frameworks contributing to its stability. The country’s positioning as a global business and lifestyle hub continues to attract international buyers and investors.
In a recent market update, Arabian Gulf Properties emphasized that this growth is aligned with evolving buyer preferences and lifestyle expectations. Chairman Badar Rashid Alblooshi noted that, “Resident and investor confidence drives consistent growth in residential property transactions. With evolving demand comes the need for developers to innovate and deliver on the increasing aspirations of residents and investors through sustainable, livable, and connected communities.”
One of the key trends shaping the residential real estate market is the rising demand for integrated, mixed-use developments. Buyers are increasingly seeking properties that offer a combination of residential, retail, and recreational amenities in one location. This shift is expected to accelerate as the UAE’s population grows and urban planning continues to evolve.
The residential segment is also emerging as a core driver of economic and urban development in the UAE. As the country advances towards a knowledge-based and diversified economy, industry experts view real estate—particularly housing—as central to long-term sustainability and livability goals.
With multiple master-planned communities and smart city projects underway, Dubai, Abu Dhabi, and Sharjah are likely to remain hotspots for residential real estate investment. The market outlook suggests growing opportunities for both first-time homebuyers and seasoned investors seeking stable returns in one of the region’s most transparent and well-regulated property landscapes.
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