The property playbook 2025: Inside the UAE's real estate reset

Khaleej Times

4 days ago

The UAE property market has always been a powerhouse of ambition and innovation, but 2025 marks a new chapter; one defined by precision, purpose, and a pivot towards long-term sustainability. No longer is success in real estate about chasing the biggest or most luxurious asset. Today's investor is discerning, data-driven, and highly attuned to lifestyle shifts. They're asking tougher questions, seeking smarter returns, and demanding properties that offer more than just four walls; they want flexibility, community, tech-savvy features, and enduring value.
From the bustling mid-market hubs of Dubai to the quietly booming emirates of Ras Al Khaimah and Sharjah, the UAE's real estate scene is being redefined. Factors like hybrid work culture, affordability, branded residences, and energy efficiency are no longer perks; they're prerequisites. As government policies focus on urban planning, affordability, and smart city ambitions, developers and investors are recalibrating their strategies to stay ahead.
Against this dynamic backdrop, BTR spoke to Hamdan Al Kaitoob, Senior Vice President of Sales and Marketing at Deyaar, and Cherif Sleiman, Chief Revenue Officer at Property Finder on what's next. Their exclusive insights unpack the forces shaping investor priorities from shifting buyer profiles and pricing sweet spots to geographic trends and the growing demand for tech-integrated, community-centric living. Exploring what it truly means to make a 'smart investment' in 2025 and why the smartest decisions start with understanding what people really want from their homes, their communities, and their futures.
"In 2025, when people talk about 'investment-grade' properties, they're usually looking at a combination of location, design, and operational efficiency," says Hamdan Al Kaitoob of Deyaar. 'Prime locations near urban hubs, transport links, and essential amenities like schools and hospitals are key here. But now, properties that are move-in ready with modern tech and energy-efficient systems and feature flexible layouts, are catching investors' eyes. For instance, homes with keyless entry, high-speed Wi-Fi, and adaptable spaces for remote work are commanding higher rental yields,' he added.
'Investors are also prioritising properties with professional management and tech-enabled operations, which can boost revenue retention,' he said.
Technological advancements in property management are making a notable difference. "AI-powered analytics and IoT-enabled smart buildings have helped reduce operational costs by up to 20 per cent," he adds, citing US firm Primior's findings. At Deyaar's Park Five, for example, wellness features, sustainable systems, and community-centric design reflect these priorities.
Community vs independent living: What do Investors prefer?
Investor sentiment is clearly leaning toward community-focused developments, notes Al Kaitoob. Post-Covid shifts in lifestyle have made mixed-use communities with residential, commercial, and recreational elements more attractive than ever.
"Projects like Midtown and Park Five were designed to create opportunities for social connection," he explains. Shared spaces like rooftop gardens, co-working areas, and wellness zones are more than amenities; they're key selling points.
Even Deyaar's new AYA Beachfront Residences in Umm Al Quwain reflects this trend with its community hub that combines dining, social, and recreational facilities. This mirrors a global movement towards boutique-style living; exclusive yet communal, offering connection without compromising on privacy.
Flexibility is booming:
"Absolutely, this segment is on the rise," confirms Al Kaitoob. Residences like DWTN Residences offer the prestige and amenities of top-tier hotels with the stability of private property ownership. It's a formula that's increasingly attracting high-net-worth individuals.
Meanwhile, hybrid work culture has intensified the demand for flexible-use properties. "Park Five integrates outdoor coworking zones and wellness areas to serve both professionals and families," he says. The focus is clear: versatility, well-being, and functionality in one package.
Investor priorities: It's no longer just yields
Investors today are more strategic. While Dubai's healthy 6.31 per cent city-wide rental yield (Global Property Guide) remains attractive, they're also betting on long-term capital growth and resale potential, according to Al Kaitoob.
"Our ELEVE project in Jebel Ali targets all three objectives: income, appreciation, and exit potential," Al Kaitoob says. Branded projects and those with green or smart certifications are especially appealing for their value retention and resale advantages.
Hybrid work is now a real estate factor:
The lines between work and home have blurred permanently. "Homes are now expected to be offices, gyms, and wellness retreats all at once," says Al Kaitoob. Deyaar has responded with properties like Park Five, which offers outdoor coworking and fitness centres.
Their flagship DWTN Residences takes it even further with AI meditation pods, air yoga zones, and playrooms; reimagining what holistic urban living can look like. Globally too, apartments with convertible spaces are outperforming traditional layouts in terms of occupancy, he continues.
Mid-market momentum: What the numbers say
The Dh1-3 million bracket is powering the UAE's real estate momentum, says Cherif Sleiman of Property Finder. "It's consistently clocking over 8,000 transactions per month, double that of the sub-Dh1 million segment."
Affordability has become a cornerstone of buyer decisions, especially after Dubai's government announced affordable housing initiatives aligned with the 2040 Urban Master Plan. "This segment contributes to about 30 per cent of monthly transaction value and shows high stability and mortgage activity," Sleiman adds.
Apartment sizes in demand:
Apartment living remains king, but size matters. Property Finder data shows that 34 per cent of renters are looking for one-beds, 30 per cent for two-beds, and only 11 per cent for studios. That means compact but practical spaces are in high demand, especially among first-time buyers and young families.
Shift toward ready properties in mid-tier segment:
There's a noticeable pivot away from off-plan properties in the Dh1-3 million range. "We saw a 5 per cent dip in off-plan interest and an 8 per cent rise in demand for ready units from January to May 2025 compared to last year," says Sleiman.
While off-plan properties still have their appeal, especially with flexible payment plans, ready units are gaining traction for their immediate rental returns and reduced risk.
Geographic hotspots: The unexpected winners
Data from Dubai Land Department pinpoints several emerging communities leading the mid-market charge: Culture Village, Wasl Gate, and Motor City have seen transaction volume growth of over 100 per cent. Meanwhile, Jebel Ali, Al Safa, Al Wasl, and Wadi Al Safa 3 have each recorded over 50 per cent growth.
Is oversupply a risk?
"From a top-line perspective, we are not seeing an oversupply,' assures Sleiman. The market is healthy, particularly in the apartment category. Studio, one-bed, and two-bed options still dominate searches. Meanwhile, the villa and townhouse segment, which historically faced a shortage, is now seeing a healthy pipeline of new launches.
International vs local demand: International interest in mid-market properties is robust, led by buyers from the USA, UK, India, Egypt, and Germany. Interestingly, Sleiman notes a rise in Ultra High Net Worth Individuals from these regions showing interest in premium offerings too, suggesting that Dubai's market appeal spans the full investment spectrum.
Beyond Dubai: RAK and Sharjah surge forward
Property Finder Data reveals that RAK and Sharjah are making quiet but powerful moves. Ras Al Khaimah recorded a 40 per cent spike in monthly interest from January to May 2025 compared to 2024, buoyed by big-ticket projects like Wynn Al Marjan Island.
Sharjah saw an even more impressive 63 per cent surge. Improved infrastructure, expanding developer activity, and more accessible pricing have made it a standout for end-users and investors alike. Al Ain remains stable, an ideal choice for conservative long-horizon investments.
Off-plan vs ready, primary vs secondary: What's the balance?
"Investors are diversifying strategies more than ever," notes Sleiman. In 2025, off-plan deals average 3,200 monthly, still leading the charts, but down from a peak of 6,000 in October 2024. Ready properties are rebounding, averaging 2,400 deals a month, a sign that immediate yield and lower risk are gaining ground.
Preference for primary properties is also strong, with transaction volumes 33 per cent higher than secondary sales. "Buyers are drawn to new designs, smart features, and long-term appreciation prospects," Sleiman says.
As Hamdan Al Kaitoob puts it, "The post-pandemic investor is more informed, more selective, and more lifestyle-driven."
And as Cherif Sleiman adds, "We're seeing the rise of a holistic investor, someone who balances financial logic with livability."
Final take: Investing where vision meets value
As 2025 unfolds, one thing is clear: UAE real estate is no longer about playing it safe or chasing trends. It's about anticipating lifestyle shifts, embracing tech-forward development, and aligning with a more holistic sense of value. The line between home and investment continues to blur, demanding that buyers consider emotional comfort alongside economic gain.
Investors are becoming strategists, weighing mid-market affordability against premium branded experiences, choosing between ready convenience and off-plan potential, and eyeing new destinations like Ras Al Khaimah and Sharjah with fresh optimism. They're thinking beyond square footage; to connectivity, wellness, sustainability, and community.
In this environment, the winners won't just be those who follow the data, but those who also understand the desires behind the demand. Whether you're a seasoned investor or a first-time buyer, the most important question in 2025 isn't just 'where?' or 'what?' it's 'why now, and for whom?'
The answers, as this playbook reveals, lie at the intersection of insight, innovation, and impact. And in the UAE, the future of real estate isn't just being built—it's being reimagined. The 2025 property playbook is clear: the future of UAE real estate belongs to those who adapt quickly, think long-term, and invest smartly.
What smart investors are doing now
2025 has introduced a far more nuanced real estate landscape. Gone are the days of single-strategy investment. Today's buyer wants: