Two recent studies (Statista & Mordor Intelligence) report that UAE Residential Property Market are set to grow at a steady CAGR of 2.66% through 2029, with the total market size projected to surge from $143B in 2025 to $217B by 2030 (CAGR 8.66%). This is more than just numbers; it’s a signal of strong investor sentiment, a maturing housing model, and a resilient economic strategy.
What’s Driving the Market Growth?
Key drivers include strong investor sentiment, demographic shifts, liberal visa reforms, and mega-project rollouts. Dubai held 45% of all residential transactions in Q1 2025, totaling AED 115 billion, up 23% YoY .
Apartments vs. Villas: What’s Winning?
- Apartments dominate with 73% market share preferred by urban professionals.
- Villas are growing at 9.20% CAGR, powered by demand in peripheral zones and flexible payment schemes .
Off‑Plan Makes Big Gains
Primary sales (off‑plan) now account for 56% of Q1 2025 activity, growing at a 10.39% CAGR, as developers release projects that meet demand for customization and the promise of capital gains .
Service Sector Expansion
The UAE real estate services market (includes brokerage, valuation, facility management) is valued at US $18.45 billion in 2025, with a projected 6.05% CAGR to reach US $24.75 billion by 2030
Trends Fueling This Growth
- Golden Visa Appeal: Long-term residency options are drawing serious investors.
- Rise of End-Users: More buyers are purchasing homes to live in, not just flip.
- Build-to-Rent Boom: Developers are targeting rental demand with purpose-built communities.
- Smart & Green Homes: Tech-enabled, eco-conscious properties are in demand.
- Institutional Inflow: REITs and global funds are now eyeing residential assets.
- New Growth Corridors: Suburban hubs like Dubai South and Yas Island are heating up.
The takeaway?
If you’re eyeing long-term, low-volatility investments with upside potential, UAE’s residential sector deserves a front seat in your portfolio.
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