What are the main current trends and future prospects of the real estate market in the United Arab Emirates for a foreign investor?
What developments are shaping the real estate market in the United Arab Emirates (UAE) and what can a foreign investor expect in the coming years?
What opportunities are emerging, what risks need to be monitored, and how to prepare for change?
Current trends in the UAE real estate market
The UAE real estate market is experiencing an interesting phase. For example, in the emirate of Dubai, house prices and "off-plan" sales continue to see strong demand, especially from international investors.
At the same time, however, strong supply growth is expected: one study indicates that more than 180-200 thousand housing units could be delivered in 2025-26, generating demand pressure that could moderate price increases.
In terms of rental yields, for example, rent growth in Dubai has slowed (about +8.5 percent year-on-year as of May 2025) compared to stronger periods.
In addition, new geographic focuses are emerging: not only Dubai, but also other emirates (Abu Dhabi, Sharjah, Ras Al Khaimah) offer emerging opportunities due to favorable infrastructure and policies.
Finally, regulation and governance are becoming increasingly relevant: anti-money laundering controls, digitization of real estate transactions, and increased transparency are trends that are influencing the environment.
The future outlook: what it means for the foreign investor
Looking ahead, it is important for a foreign investor to consider that:
Growth potential remains, thanks to the UAE's strategic geographic location, political stability, and the fact that many policies are favorable to foreigners (see visas, freehold, taxation)
But, the "high" yield window could slow down: with more supply coming in, price margins could stabilize or even see moderate corrections.
The choice of area, property quality, and property type ("ready" vs. "off-plan") will become increasingly discriminating. Generic numbers will not suffice: details will be relevant.
The time and capital management factor becomes important: a real estate investment in the UAE today should be seen as part of a medium- to long-term strategy (5-10 years) rather than a quick gain.
The change in global habits (smart living, coworking, sustainability) will have an impact here as well: properties with higher quality, amenities, green tech will have a competitive advantage.
What emerging opportunities to seize today and what risks to monitor
Among the emerging opportunities are: geographic diversification within the UAE, investment in "secondary" areas with potential, higher quality properties that stand out in terms of service and location, and properties that allow 'investor visa' and residency.
Risks to analyze: increased supply that can compress returns, possible restrictive regulations or regulatory changes, global market fluctuations that impact foreign flows, and management/maintenance costs that can erode profitability.
A smart investor will therefore have to do a thorough due-diligence, including "less positive" scenario and assess whether the property holds up even under pressure.
Why rely on REMA Living Real Estate to navigate these trends and prospects
We at REMA Living Real Estate are constantly up-to-date on UAE real estate market trends and translate this information into real estatestrategies for you. We don't just propose "a property" but help you interpret the context, select properties that make sense in the new scenario, plan how the investment fits into your life project, analyze risks, and build management for the medium to long term. With our advice, the investment will be more than a purchase: it will be a step toward a new vision, consistent with your values of seriousness, transparency, and usefulness.
Practical advice: keep the vision but be flexible
A good piece of common sense advice: adapt your strategy to the changing market. Be ready to change the timing, area or type of property if the context evolves. Don't lose your vision: because you are investing not only for yield but also to build value and peace of mind. But at the same time, be flexible: a market that is growing less rapidly does not mean it is not valuable; it means you have to be more selective, more informed, more prepared. Keep a margin of safety and always assess "how it goes" if the timeframe is longer or the returns less immediate.
