Other emirates like Abu Dhabi and Ras Al Khaimah also present strong real estate investment prospects aligned to ambitious development plans. However, dynamics vary at the emirate level based on demand drivers, infrastructure projects, policy reforms and more.
This analysis will provide an in-depth 2024 outlook across hospitality, residential, office, retail and industrial real estate in Dubai, Abu Dhabi, Ras Al Khaimah and Sharjah using recent performance trends, growth catalysts, and expert projections.
For investors and end-users, the research can help identify potential high-upside asset classes and locations to target amid the Middle East’s promising realty landscape while steering clear of segments with elevated risk.
Dubai Real Estate Market Outlook
The Middle East Real Estate landscape has an optimistic outlook for 2024, especially Dubai, which is poised to see robust activity across sectors - hospitality, residential, commercial offices, retail, as well as industrial and logistics properties.
Hospitality Sector
Dubai’s hospitality sector has shown a remarkable recovery from the pandemic-induced slowdown. According to leading real estate consultancy Cavendish Maxwell, at the end of 2024, Dubai’s hotels returned an average occupancy rate of about 76%.
Occupancy will continue to grow, reaching 80% in 2025, as tourism continues on its upward path. In Dubai, luxury hotel rooms made up 35% of the total hotel market. There were about 53,700 rooms in 168 properties. Four-star hotel rooms followed, making up 29% of the market with 43,200 rooms in 195 properties.
Three-star and two-star hotels took up 19% of the market. They offered 29,100 rooms in 276 establishments. Luxury hotel apartments also played a significant role, with 13,900 units in 80 properties, accounting for 9% of the market. Moreover, The average daily rate per hotel room was AED 502 in 2024, compared to AED 488 in 2023.
This data highlights that future ADRs for hotels are likely to reach AED 750 at some point, with visitor confidence and spending power gaining momentum upward.
Dubai can see a robust 2025 for hotels and serviced apartments. Over 2,700 new hotel rooms opened in Dubai in the first half of 2024. Another 10,100 rooms will be added by the end of 2025, says Cavendish Maxwell. Dubai welcomed 12 new hotels between January 1 and June 30. Now, there are 716 hotels with almost 149,750 rooms. By the end of next year, 40 more Dubai hotels will open. This will add 4,748 rooms in 2026 and 2027, the study found.
The majority of the upcoming inventory pipeline is of luxury and upper upscale, which consists of about 73 percent of total new supply. Accor, Hilton, and Jumeirah—leading hotel firms—spelled out ambitious expansion plans for Dubai, riding high on the wave of the city’s Tourism Vision 2025.
As it increasingly becomes intrinsic, sustainability for hotels is shifting investments into green buildings and technologies that may convey noteworthy savings in water and energy. Evolution does not stop within guest-centric amenities either—more health-focused F\&B outlets, state-of-the-art fitness regimes, co-working spaces, etc.
Residential Property Sector
On the residential front, property consultants forecast sustained investor appetite for Dubai’s housing sector in 2024 after stellar price growth. Bayut shows that the sales volume reached 172,816 transactions, marking a substantial increase of 38.7% compared to the previous period. The total sales value amounted to an impressive 441.7 billion AED, representing a 28.3% rise. Additionally, the average price per square foot in Dubai’s real estate market climbed to 1,734 AED, reflecting a 5.6% increase
Industry analysts dubizzle revealed that affordable-priced upcoming areas like Dubailand , Dubai South , Dubai Creek Harbour as well as established neighborhoods like Jumeirah Village Circle , saw maximum homebuyer interest during 2024.
Concurrently, elite communities located on Palm Jumeirah , Emirates Hills, Damac Island and Downtown Dubai continued to attract UHNWI (Ultra High Net Worth Individuals).
The future of Dubai’s residential real estate market looks bright. It’s expected to see a big increase in housing supply. By 2025, around 41,000 new units will hit the market. Then, another 42,000 will join in 2026. This growth is an 80% jump from 2024. Developers are working hard to meet this demand. They’re focusing on building sustainable and affordable homes. This is to serve the growing number of expatriates. At the same time, they’re keeping luxury options for the wealthy.
Commercial Office Space Sector
The positive economic sentiment that prevails within the business community, consistently high rankings in global ease of doing business, and competitiveness indices have precipitated strong demand for commercial office real estate in Dubai from investors and end-users alike.
As per projections, major projects like DIFC Square and Immersive Tower will add over 10 million sq ft of new office space by 2028, with 85% of this concentrated in free zones. Demand is expected to be high for Grade A spaces located in established business districts like Dubai Internet City, Dubai Media City, Dubai Knowledge Park and Dubai Production City, which are likely to witness heightened leasing activity over the next year as more global entities continue to flock the city to capitalize on its investor-friendly policies.
Areas like Downtown Dubai and Business Bay, as well as new urban districts like Dubai Creek Harbour, also present strong value propositions for large corporations for their regional headquarters and zones dedicated to futuristic industries like crypto and blockchain located nearby.
According to current market trends, the average monthly rent for a Grade A office in Dubai in 2025 is estimated to be between AED 150 and AED 300 per square foot annually, with prime locations like Business Bay and Downtown potentially commanding higher rates due to high demand.
Retail Real Estate Sector
Dubai’s retail industry is a big part of its booming economy. It’s a key sector that makes up a big part of the city’s GDP. This makes Dubai a top choice for businesses looking to grow in the $1.5 trillion MENA consumer spending market.
Experts predict Dubai’s retail landscape is primed for exponential growth in sync with its vision to become the world’s most visited city. In recent years, Dubai has seen a lot of wealthy individuals moving in. This has led to a big demand for retail and online shopping services. The retail industry in Dubai has also created over 250,000 jobs. Recent additions of massive retail flagships like Dubai Hills Mall, Dubai Square, and Nakheel Mall on Palm Jumeirah over the past year have energized the market. Moreover, dedicated lifestyle communities offering an amalgamation of residences, offices and retail outlets. In the retail sector, Dubai will see many prominent malls.
Meydan One Mall
Sobha Mall
Expo City Mall
The sector is expected to grow by more than 6% through 2029. Over the next three years, the sector is set to see steady growth. This includes a 12% growth in e-commerce and social commerce. This growth will make the ecosystem more diverse and attract more players. It will also draw in tech companies and providers. They will help bring new and innovative solutions to the e-commerce market.
E-commerce is also driving investment in large warehousing and distribution hubs as well as delivery stations across Dubai. Tech innovation is the new mantra for Dubai’s malls and retailers, with novel concepts like RetailGPT that leverage AI to provide hyper-personalized recommendations to enhance customer experience garnering widespread interest.
The promising outlook has put organized retail real estate in Dubai firmly in the spotlight, with investment activity hitting never-before seen peaks recently as investors aim to capitalize on strong positive consumer confidence and spending levels within the Emirate.
Industrial and Logistics Sector
Dubai’s vision to establish itself as the logistics and manufacturing capital of the world has led it to strategically enhance its industrial and logistics infrastructure significantly.
Integrated zones like Dubai Industrial City, Dubai South, Jafza FZE act as stabilized ecosystems for carrying out trade, transporting goods as well as manufacturing high-value items while also attracting substantial foreign investment inflows.
Dry warehouse leasing activity is also heating up, with rental rates for such logistics facilities increasing sharply. City-wide initiatives like the Dubai 2040 Master Plan focused on spurring growth in priority sectors like pharma, medicinal equipment, and electronics and expanding air and shipping capacity will further feed demand for warehousing and manufacturing real estate in the coming years.
Abu Dhabi Real Estate Market Outlook
Turning to the Abu Dhabi Real Estate Market , in recent years, the attractiveness of Abu Dhabi has established itself as an attractive destination for real estate investment. Factors like pro-business policies, strategic mega-projects, residency incentives, safety, and quality of life continue boosting the capital’s appeal.
Hospitality Sector
Hospitality represents an important driver in the process of Abu Dhabi’s economic diversification. Billions have been invested in tourism infrastructure and attractions to cement its position as a world-class destination for MICE and leisure.
Temporary setbacks caused by the COVID-19 pandemic were seen, but Abu Dhabi’s hospitality sector rebounded strongly in 2022 and early 2023. Revenues of hotels hiked to AED 1.22 billion in H1-24 and also raised occupancies, average daily rates, and length of stay.
Industry reports indicate stellar performance continued into previous year. Occupancy touched 81% in 2024—the highest since the coronavirus outbreak. ADRs, on the other hand, show no signs of stopping. This upward trajectory is projected to reach 85% by 2025, driven by increased tourism and business travel.
The DCT Abu Dhabi has significantly boosted visitor numbers through massive event sponsorships and seasonal campaigns. Recent data from the Statistics Centre Abu Dhabi hotels received 2.411 million guests in H1 2024. In August 2024, Abu Dhabi’s revenue per available room (RevPAR) was AED329.80, a 19.3% increase. This was accompanied by an occupancy rate of 75.9%, a 10.5% increase, and an average daily rate (ADR) of AED434.30, an 8.0% increase. Revenue Per Available Room (RevPAR) is expected to reach approximately AED 403 by the end of 2025, representing an 22% increase. This growth is attributed to strategic tourism initiatives and the hosting of major international events.
Residential Property Market
The residential sector accounts for good growth in Abu Dhabi. After a temporary blip during COVID-19, sales prices and rental rates across both apartments and villas in the UAE capital have shown tremendous upside over the past 18-24 months. Backed by higher employment levels, rising household incomes, new off-plan launches and expanding buyer demand, the Abu Dhabi real estate sector showed a steady growth in 2024. It saw 14,662 transactions worth AED47.92bn ($13bn). Residential properties made up 66 per cent of all transactions. They also accounted for 53 percent of the total value. This included 9,707 transactions worth AED 25.6bn ($7bn). The off-plan market in Abu Dhabi saw about 5,385 transactions. This was 55.5 per cent of the total in 2024.
Waterfront communities like Al Reem Island , Al Raha Beach , Yas Island and Saadiyat Island in particular are expected to outperform and deliver upper-end price increases for investors seeking premium capital gains. More affordable neighborhoods located inland will also record stable price growth between 3-5%, ensuring holistic market strength.
Abu Dhabi registered a 10 per cent annual growth in rents for villas and 16 per cent for apartments, according to Cushman & Wakefield Core. This momentum will continue through 2025 as occupancy levels are going to increase. Recent findings also reveal a significant increase in ready home sales by 54% and a rise of 15% in office rent in Abu Dhabi.
Overall, Abu Dhabi offers strong upside potential for buyers, investors and landlords in 2025 through double-digit capital and rental gains.
Retail Sector
Abu Dhabi’s retail sector outlook for 2025 is promising, buoyed by the UAE’s projected 5% economic growth and a 2.7% increase in retail sales volume expected by 2026. The city’s non-oil economy, including retail, is showing strong growth, outpacing the oil sector. This positive trend is further supported by a surge in tourism, with Abu Dhabi welcomed almost five million guests in the year through to October with the number of international guests rising 26 percent.
Ongoing population growth and major infrastructure projects like the Abu Dhabi Metro are set to enhance connectivity and boost retail activity. The e-commerce segment is also expanding, with its contribution. Government initiatives aimed at economic diversification and attracting foreign investment are creating a favorable environment for retail growth.
With high consumer confidence and Abu Dhabi’s status as the ‘capital of capital’ attracting financial services firms, the city is well-positioned to capitalize on the UAE’s projected retail market value of approximately $74.87 billion by 2028. While exact figures for Abu Dhabi’s retail sector in 2025 are not available, the overall trend suggests a positive outlook, with the city playing a crucial role in the country’s retail growth..
Industrial Sector
Like retail sector, Abu Dhabi’s industrial sector outlook for 2025 is promising, driven by strong economic growth and diversification efforts. The emirate’s real GDP growth is projected to accelerate to 5.6% in 2025, with the non-oil sector playing a significant role. The industrial products and services market is expected to contribute US$4.5 billion in value added to the economy, growing at a compound annual growth rate of 2.46% from 2025 to 2029.
The sector is anticipated to employ around 86,300 people by 2025, with labor productivity reaching US$52,300 per employee. Abu Dhabi’s focus on economic diversification is evident in the strong performance of non-oil sectors, including manufacturing, which is expected to grow by 7.7% in 2025. This growth is supported by ongoing infrastructure projects, increased foreign direct investment, and government initiatives aimed at expanding the industrial sector’s contribution to GDP.
The emirate’s strategic position as a global trade hub and its efforts in fostering innovation, particularly in areas like artificial intelligence and sustainable development, are likely to further boost the industrial sector’s performance in 2025.
Ras Al Khaimah’s Real Estate Market Outlook
Like Abu Dhabi market, Ras Al Khaimah Real Estate Market has outperformed most other Emirates in terms of real estate growth over the past 3-4 years. The emirate offers a more affordable alternative to investing in Dubai , with improving infrastructure and connectivity.
Hospitality Sector
Ras Al Khaimah’s hospitality sector looks set to grow and change a lot in 2025 matching the good trends in the UAE’s tourism industry. The emirate has seen its hotels getting fuller and making more money per room, which points to a strong future in the coming years.
In 2024, Ras Al Khaimah’s hotels saw 10% more guests staying each year showing that more and more tourists are choosing to visit. This trend will likely keep going until 2025 helped by smart plans and new building projects.
The UAE’s overall hospitality market is set to grow to USD 9.46 billion by 2029, with a CAGR of 5.12%. Ras Al Khaimah stands to benefit from this growth, as it aims to develop both luxury and midscale accommodations to meet the needs of different types of travelers.
Branded residences have a big impact on Ras Al Khaimah’s hospitality sector. Marjan is targetting 8,000 hotel keys, 12,000 residential units and 600 holiday villas on Al Marjan Island. Al Marjan Island, extends around 4.5 km deep into the Arabian Gulf and covers an area of around 2.7 million sqm.These residences are expected to make up 40% of the residential market in Ras Al Khaimah by 2029. This points to a big change in the emirate’s hospitality scene and opens up chances for extended stays and property investments.
The emirate is also getting a boost from the UAE’s overall strong showing in average daily rates (ADR) and RevPAR. As of March 2024, Ras Al Khaimah’s ADR went up by 1.9% compared to 2019 levels, while its RevPAR grew by 3.0% doing better than before the pandemic.
Ras Al Khaimah aims to become a rising leisure spot likely to see higher occupancy rates in 2025. This growth stems from the emirate’s push to expand its tourism options, including adventure trips cultural events, and MICE (Meetings, Incentives, Conferences, and Exhibitions) gatherings.
The UAE’s “We The UAE 2031” vision is set to have a positive impact on Ras Al Khaimah’s hospitality industry. This nationwide plan aims to boost the sector’s economic contribution to AED 450 billion by 2031. Such a big goal will push investments and growth in up-and-coming spots like Ras Al Khaimah. As a result, the outlook for Ras Al Khaimah’s hospitality scene in 2025 and after looks promising.
Residential Property Sector
Ras Al Khaimah’s residential market has mirrored the tourism sector’s exponential rise, establishing itself as the emirate’s most investor-friendly real estate asset class. First three quarters of 2024 soared to AED 11.95 billion, a jaw-dropping increase exceeding 70% when compared to AED 3.84 billion in 2020. These figures highlight Ras Al Khaimah’s transformation into one of the UAE’s most dynamic real estate markets.
Future outlook is very promising. The emirate’s strategic developments, such as the limited supply of 20,000 units on Al Marjan Island, position it as a lucrative destination for investors. In today’s market, two years ahead of Wynn’s grand opening, the average hotel room in the area ranges between AED 1,000 and AED 1,500 per night. According to a new report, RAK’s residential sector is set to add over 14,000 units between 2026 and 2029, with branded residences accounting for 5,600.
Commercial Office Sector
While Ras Al Khaimah’s commercial office market lacks the scale and variety of Dubai or Abu Dhabi, it has registered gradual yet consistent growth aligned to population and economic expansion.
As per estimates, over 1 million square feet of Grade A office stock was added across multiple freehold developments over the past 5 years. This shows further commercial property price rises of 15-18% in 2025. So the office sector presents a relatively undervalued investment opportunity to capitalize on the emirate’s rapid economic ascent.
Retail Property Sector
Much like the commercial sector, Ras Al Khaimah’s retail real estate ecosystem has also witnessed gradual yet positive momentum over the last decade, giving way to quality malls, community shopping centers and mixed-use developments.
While retail property transaction data remains patchy, surging investor interest is evident from numerous new mixed-use hospitality projects featuring dedicated retail and F\&B space. Established malls are also embarking on expansion plans to cater to the Emirate’s rising population.
Industrial Real Estate Sector
Beyond the glamor of Ras Al Khaimah’s hospitality sector and mainstream residential properties lies emerging real estate investment potential within industrial assets.
As one of the UAE’s original manufacturing and mining hubs, Ras Al Khaimah houses several industrial zones, quarries, factories and warehouses. Ras Al Khaimah to offer an unparalleled ecosystem for both SMEs and global investors seeking to establish or expand their businesses in the UAE. Home to 38,000 businesses operating across diverse sectors, the emirate’s emphasis on fostering industrial growth is evident in its comprehensive support for various sectors. Government also helps businesses in licensing. As of September 2024, the total capital of valid licenses registered with the department of Economic Development in Ras Al Khaimah has surged by 15% to AED9.26 bn, reflecting an increase of AED250 million compared to the previous year which totalled around AED8.00 bn.
This mirrors the Emirate’s focus on expanding output and employment across production-linked sectors. For real estate investors, it unlocks prospects within warehousing, storage spaces and processing facilities leasing over the medium term. While risks exist, healthy yields of 8-10% make prospects worth evaluating.
Sharjah Real Estate Market Outlook
The Middle East real estate market is diverse, with each emirate having its own unique dynamics. Sharjah , in particular, presents new prospects for property investors in 2024. As the third-largest emirate in the UAE, Sharjah offers affordability and growth potential that sets it apart from neighboring Dubai.
Let’s explore predictions for Sharjah property in 2024 across residential, office, retail, and industrial sectors.
Hospitality Sector
Sharjah’s hospitality sector is expected to experience substantial growth by 2025, aligning with the broader UAE hospitality market trends. The UAE hospitality market size is projected to reach USD 53.33 billion in 2025, growing at a CAGR of 5.46% to reach USD 69.57 billion by 2030. While specific data for Sharjah is limited, the emirate is likely to contribute significantly to this growth.
In the first eight months of 2024, Sharjah welcomed 1.057 million hotel guests, a 3.07% increase from the same period in 2023. Russia was the top source market for Sharjah, accounting for 21% of the market share, followed by India at 10% and Oman at 6%. Sharjah is expected to add approximately 2,000 new hotel rooms by 2025, increasing its total inventory to around 12,000 rooms.
Sharjah’s focus on cultural and eco-tourism, coupled with its family-friendly positioning, is expected to drive growth in the hospitality sector. The emirate’s efforts to diversify its tourism offerings, including the development of new attractions and the enhancement of existing cultural sites, will likely contribute to increased visitor numbers and longer average stays.
Real Estate Sector
Sharjah’s real estate market is anticipated to show resilience and growth by 2025, benefiting from spillover effects of Dubai’s booming market and its own unique value proposition. The Sharjah Real Estate Registration Department’s report shows the real estate market in Sharjah had a 47% jump in transaction volume in the first nine months of 2024 compared to the same time last year. These transactions totaled about $7.6 billion (AED 28 billion), with 69,078 transactions recorded—a 16.5% increase from the year before.
People from 114 countries are putting money into Sharjah’s real estate market. UAE citizens lead the pack spending $3.7 billion (AED 13.7 billion) to buy 22,908 properties. Other Gulf countries’ citizens have an impact on the market too, with investments of $462 million (AED 1.7 billion) in 1,166 properties. Arab investors from outside the Gulf region play a big part as well putting $1.4 billion (AED 5.1 billion) into 4,651 properties. On top of that, investors from other parts of the world have spent $2.0 billion (AED 7.5 billion) on 4,587 property deals. Sharjah’s real estate market is likely to benefit from several factors, including continued infrastructure development, particularly in areas like Aljada and Masaar; increasing demand for affordable housing options compared to Dubai; growing interest in Sharjah’s emerging waterfront developments; and the government’s initiatives to attract foreign investment, including long-term residency options.
Retail Sector
Sharjah’s retail sector is expected to undergo significant transformation and growth by 2025, driven by changing consumer preferences, technological advancements, and new development projects. Key projections for Sharjah’s retail sector in 2025 include: Total gross leasable area (GLA) is expected to reach 10 million square meters. Retail sales are projected to grow by 10% compared to 2024. F\&B outlets are projected to occupy 28% of mall spaces, up from 24% in 2024, reflecting changing consumer preferences. Sharjah’s retail sector growth will likely be driven by increasing population and rising disposable incomes, growing tourism sector contributing to retail spending, expansion of international retail brands into Sharjah, and development of community retail centers in new residential areas.
Middle East Real Estate Market Investors
The Middle East, particularly the GCC countries, have emerged as a hotspot for real estate investment over the last few decades. Major cities like Dubai, Abu Dhabi, and Ras Al Khaimah have attracted significant foreign investment into their robust property markets. This blog post analyzes the latest data and trends regarding the nationalities that are driving real estate purchases across the UAE.
Dubai Property Market Investors
As per data published in January 2024, Indian property buyers have reclaimed the top spot among foreign investors in Dubai Real Estate Market . After being replaced by Russians and British nationals in 2022, Indians are back as the leading overseas buyers of property in Dubai in 2023.
The table below summarizes the top 10 source countries for investors in Dubai’s property market this year:
Top 10 Nationalities Buying Property in Dubai (2023)
| Rank | Nationality |
|---|---|
| 1 | Indian |
| 2 | British |
| 3 | Russian |
| 4 | Egyptian |
| 5 | Lebanese |
| 6 | Italian |
| 7 | Pakistani |
| 8 | Emirati |
| 9 | French |
| 10 | Turkish |
As evident, property buyers from India , UK, and Russia occupy the top three positions as key sources of foreign investment. The prominent presence of investors from Egypt, Lebanon, Pakistan, and Turkey signals Dubai’s role as a safe haven amid economic and political uncertainties in these countries.
Abu Dhabi Property Market Investors
The capital emirate of Abu Dhabi has charted significant growth in overseas property buyers from Europe in 2022, with some agencies reporting a 50% rise in demand year-on-year.
The table below shows the key European nationalities driving investments into Abu Dhabi’s real estate market this year:
Top European Nationalities Buying Property in Abu Dhabi
| Rank | Nationality |
|---|---|
| 1 | Austrians |
| 2 | Germans |
| 3 | Italians |
| 4 | French |
| 5 | Romanians |
| 6 | Polish |
| 7 | Russians |
| 8 | British |
Apart from European countries, the emirate has also attracted buyers from Australia and Kazakhstan. There is strong investor appetite for luxury residences and villas located in premium neighborhoods such as Saadiyat Island, Yas Island, Al Raha Beach, and Al Reem Island.
Ras Al Khaimah Property Market Investors
The northernmost emirate of Ras Al Khaimah has also benefited from the positive momentum in the UAE realty market. Property consultancy Valustrat’s data for 2024 reveals that British buyers have topped transactions in RAK during Q1 2024, followed by other European countries.
Below is a summary of the key nationalities purchasing real estate assets in the emirate this year
Top Nationalities Buying Property in Ras Al Khaimah
| Rank | Nationality |
|---|---|
| 1 | British |
| 2 | Irish |
| 3 | Italian |
| 4 | German |
| 5 | Swedish |
| 6 | French |
| 7 | Dutch |
| 8 | Belgian |
Ras Al Khaimah’s value proposition primarily drives European interest - it provides relatively affordable secondary or vacation homes located in close proximity to Dubai and enjoying easy access to beaches, resorts, and golf communities.
Conclusion
In closing, the Middle East real estate market, especially the UAE, enters 2024 on an upbeat note after overcoming pandemic adversities. However, performance will vary at an intra-emirate level based on macroeconomic factors, infrastructure upgrades, demographic trends and strategic policy initiatives.
Interested investors should focus on hospitality, residential and industrial assets in high-growth locations like Dubai, Ras Al Khaimah and Abu Dhabi where projections point to sustainable capital appreciation and rental income potential. Meanwhile, office and retail dynamics need closer tracking before large commitments. End-users like homebuyers or tenants must also time entries considering micro-market particularities rather than broader sentiment.
Nonetheless, the Middle East offers diverse real estate investment avenues that can potentially deliver double-digit ROI in 2024. Conducting in-depth due diligence to identify markets and asset classes primed for growth within the right risk profile and time horizon is key to capitalizing on the optimism pervading the region’s realty landscape.
