Dubai, however, will continue to remain an incredibly attractive destination for global investors and families alike.
Abu Dhabi and Ras Al Khaimah to Lead UAE’s Real Estate Growth in 2025
Abu Dhabi and Ras Al Khaimah (RAK) are set to take center stage in the UAE’s residential real estate market by 2025. With a significant disparity in property prices compared to Dubai, both emirates are emerging as prime destinations for property investments, according to industry experts.
The rise of branded residences and the appeal of “affordable luxury” properties are further enhancing the attractiveness of these cities, drawing interest from both regional and global investors.
While Abu Dhabi and RAK are poised for growth, Dubai will continue to solidify its reputation as a world-class destination for investors and families, with strong demand expected to persist through 2025.
“All eyes in the premium and ultra-luxury sectors will be on Abu Dhabi this year,” said Jason Barrowclough, a senior global property consultant at Dubai Sotheby’s International Realty.
“The real estate market in Abu Dhabi remains undervalued compared to its potential. The noticeable price gap presents an exceptional opportunity for buyers,” Barrowclough added.
Farooq Syed, CEO of Dubai-based Springfield Properties, emphasized that RAK is positioning itself as a complementary growth hub in the UAE. At the same time, Dubai will retain its dominance in shaping the country’s real estate narrative.
“With over 5,600 branded residential units expected by 2029, Ras Al Khaimah is capitalizing on its stunning waterfronts and high-end developments to draw regional and international buyers,” Syed explained.
Infrastructure and Island Developments Set Abu Dhabi and RAK Apart
Industry experts highlight that Abu Dhabi’s robust infrastructure and economic stability make it a fertile ground for rapid growth in the coming years. Investors are already focusing on prime locations such as Al Maryah Island and Saadiyat Island.
Barrowclough noted that Abu Dhabi is set to benefit significantly from the vast price disparity between its properties and those in Dubai. This price gap is attracting a growing number of investors.
“For instance, prime luxury villas in Abu Dhabi cost around AED 1,000 per square foot, whereas similar properties in Dubai start at AED 3,000 per square foot,” he remarked.
Abu Dhabi has also undergone a cultural transformation in recent years, with key developments in the Saadiyat Cultural District further boosting the city’s appeal in the residential real estate sector.
In Ras Al Khaimah, projects such as the Wynn Resort on Marjan Island and luxury residential developments are turning the emirate into a sought-after lifestyle and investment destination.
“RAK offers a unique proposition of affordable luxury in a rapidly growing market,” Syed stated. He added that RAK’s ongoing developments are paving the way for diversification in the UAE’s property market, catering to buyers looking for both value and lifestyle.
Strong Start for the UAE Real Estate Market in 2025
The UAE’s real estate market has entered 2025 with strong momentum, building on the high activity levels seen at the end of 2024. Investors are actively exploring opportunities, whether as end-users or to secure properties in new projects.
While market activity remains robust, experts predict that property price increases in 2025 are likely to stabilize compared to the rapid growth seen in 2024. “The stabilization of the market is a positive sign of a healthy sector,” Barrowclough commented.
Dubai’s real estate market is expected to remain a global leader in 2025, offering unmatched opportunities for investors. This includes continued growth in off-plan sales, a resilient luxury segment, and the rise of emerging neighborhoods, signaling a transformative year for the sector.
“Dubai’s ability to adapt and deliver quality ensures its continued leadership in global real estate,” Syed said. “Whether it’s off-plan projects, luxury housing, or affordable living, 2025 will redefine urban living possibilities.”
The market is projected to expand by 5-10% in 2025, driven by strong demand for off-plan sales, luxury properties, and growth in emerging communities, Syed added.
