Abu Dhabi, along with Ras Al Khaimah (RAK), are predicted to be the toast of residential real estate boom in the UAE in 2025, with huge gap in home prices compared to that in Dubai catapulting the two emirates to the forefront for property investments, industry players said.
Surge in branded residences and offerings of ‘affordable luxury’ properties will also aid attracting both regional and international investors to the two cities, they said.
Dubai, however, will continue to remain an incredibly attractive destination for global investors and families alike, with 2025 poised to continue reflecting that demand.
“This year, all eyes in the prime and super-prime sectors will be on Abu Dhabi,” Jason Barrowclough, senior global property consultant at Dubai Sotheby’s International Realty, told Arabian Business.
“Real estate in the capital remains significantly undervalued relative to its potential, and the significant price gap presents an incredible opportunity for buyers,” he said.
Farooq Syed, CEO of Dubai-based Springfield Properties, said Ras Al Khaimah (RAK) is set to establish itself as a complementary growth hub in the UAE this year, even as Dubai will continue to dominate the UAE’s real estate narrative.
“With over 5,600 branded residential units expected by 2029, RAK is leveraging its scenic waterfronts and premium offerings to attract regional and international investors,” Syed told Arabian Business.
Robust infra, fancy island developments to propel Abu Dhabi, RAK as lifestyle and investment hotspots
Industry observers said with robust infrastructure and economic stability, the UAE capital city is primed for rapid growth this year.
Forward-thinking investors are already capitalising on it, particularly areas like Al Maryah Island and Saadiyat Island, they said.
The Dubai Sotheby’s International Realty senior consultant said Abu Dhabi is expected to reap the benefits of the huge price gaps for properties vis-à-vis Dubai, attracting investors in large numbers.
“For example, luxury villas in prime locations in Abu Dhabi are priced at around AED 1,000 per square foot, compared to a minimum of AED 3,000 per square foot in Dubai,” he said.
Barrowclough said in recent years, Abu Dhabi has experienced a ‘cultural renaissance’, driven by developments in key areas like the Saadiyat Cultural District, which will also work to the advantage of the residential real estate sector in the city.
As for RAK, the Springfield Properties’ chief executive said developments like the Wynn Resort on Marjan Island and luxury residential communities are positioning the emirate as a lifestyle and investment hotspot.
“RAK offers a unique opportunity – affordable luxury in a high-growth market,” he said.
Syed said RAK’s rapid development is setting the stage for diversification in UAE real estate, catering to buyers seeking both lifestyle and value.
Meanwhile, UAE overall property market activities gets off to a strong start in Jan
Meanwhile, industry insiders said the overall real estate market activity in the UAE has got off to a strong opening in the early weeks of the new year, riding on the momentum carried over from the busy end to 2024.
Investors are actively seeking opportunities, whether to secure the latest projects or, as end-users, they said, adding that prices are, however, unlikely to increase as sharply as in 2024.
“The market is set to stabilise, which is healthy,” Barrowclough said.
Besides, Dubai’s real estate market will transition into 2025, offering unparalleled opportunities for investors and buyers alike, despite the expected rise of Abu Dhabi and RAK as the new hotspots of property investments in the UAE, industry players said.
The continued dominance of off-plan sales, the resilience of the luxury segment, and the rise of emerging neighborhoods all point to a transformative year ahead, they said.
“Dubai’s adaptability and commitment to quality ensure its leadership in global real estate. Whether in off-plan, luxury, or affordable housing, 2025 is set to redefine the possibilities of urban living,” Syed said.
“In 2025, the market is projected to grow by 5-10 percent, fuelled by the dominance of off-plan sales, robust luxury demand, and growth in emerging neighborhoods,” he said.
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