By Younes Al Arab, Managing Director of Madar Developments
The UAE real estate market has shown exceptional growth in the first half of 2025, achieving record-breaking growth in a dynamic market landscape. As the industry evolves to changing resident and investor preferences, and forward-thinking government initiatives, real estate developers are proving that innovation, sustainability, and a rising population are key drivers for growth.
Dubai and Abu Dhabi have played a leading role in driving this growth. Dubai experienced more than 98,000 property sales worth over AED325 billion in H1 2025, signaling a 40% year-on-year growth. Reflecting this upward trajectory, Madar Developments has reported a 21% rise in property sales revenue compared to the same period in 2024. While the real estate sector shows no sign of a downturn, the UAE government has launched a series of initiatives aimed at supporting first-time homebuyers and investors to make property ownership more accessible. In Abu Dhabi, the real estate market is set to expand further with the introduction of over 11,900 new homes by the end of 2025, with a further 7,000 scheduled for 2026.
Sustainable Innovation at the Forefront
As sustainability takes centre stage in consumer demand, real estate developers are driving eco-friendly practices within the build of residential and commercial projects. For example, Madar Developments’ legacy portfolio, Tulip Oasis Collection, has achieved a 28% reduction in carbon emissions, resulting from the utilisation of sustainable materials, implementing an efficient and innovative HVAC system, and weatherproof finishes. This contributes to reducing the often harsh environmental impact of building homes and aligns with the UAE’s Green Agenda 2030 sustainability goals. As demand for green buildings increases, developers who integrate sustainability into their designs will continue to see strong market performance.
Innovation in design and lifestyle amenities has become essential to attracting discerning homebuyers and investors. The Tulip Oasis Collection is a prime example of this, introducing features such as integrated appliances, saunas, plunge pools, and gyms, addressing market demand for wellness-driven living spaces that enhance the quality of life for residents.
Expats Driving Demand
The UAE is renowned for its inclusion and diversity, quickly becoming the ideal destination for expats and families to call home. Developers need to address the tastes and preferences of this influx of new residents, curating properties that meet not only the local population’s needs, but also those of a global one. 97% of Madar Developments’ residents are expats and 3% are UAE citizens. The average age is 30 to 39 years, demonstrating the increasing need for homes that blend luxury, convenience, and community to suit this specific demographic. In Dubai, districts such as Majan have experienced notable growth, with Madar Developments contributing to a 20 – 30 percent increase in property values, thanks to the influx of expat residents seeking high-quality, sustainable living spaces. As more professionals and families from around the world relocate to the UAE, the demand for modern, high-quality homes that offer both lifestyle and functionality will continue to rise.
The outlook for UAE’s real estate sector promises further growth with initiatives aimed at promoting home ownership, an ever-growing expat population, and increasing demand for sustainable and wellness-oriented properties. The UAE’s government initiatives, safety and ease of living, coupled with top-class property developers bringing unparalleled and innovative homes to the market, ensures that the country is well-positioned to meet the market’s evolving needs.
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Also read: Fractional, Fast, and on the Ledger: Tokenisation in Dubai’s Property Market
