Bread Capital monitors the UAE’s real estate market with institutional rigor and a strategic investor mindset.

This report summarizes the key data and trends shaping Abu Dhabi and Dubai through the first half of 2025, based on publicly available information.

The UAE Real Estate Landscape, at a Glance

The first half of 2025 reaffirmed the UAE’s position as one of the world’s most dynamic real estate markets.
Abu Dhabi showed a two-speed recovery after a soft Q1, while Dubai continued its record-breaking trajectory.
Behind this dual dynamic lie strong fundamentals, sustained GDP growth, diversification, and rising population inflows.

Bread Capital’s analysis focuses on these underlying trends rather than short-term movements, to provide an institutional understanding of market resilience.

UAE GDP and Non-Oil Growth (2023–2025)

UAE Real Estate Dual Strengths

Two distinct engines drive the UAE’s property market: Dubai’s scale and liquidity, and Abu Dhabi’s stability and sovereign depth.

Abu Dhabi

Stability, Sovereign Capital, and Yield

Abu Dhabi offers a more conservative, yield-driven environment anchored by sovereign capital and long-term policy frameworks. Its fundamentals rely on stability, governance, and disciplined urban growth.

Highlights

  • Safest city globally, 9 consecutive years (Security Index: 88.6).

  • USD 1.7 trillion AUM across ADIA, Mubadala, and ADQ sovereign funds.

  • Backed by Vision 2030 and sustained public investment programs.

  • Highly selective urban planning, limiting oversupply and speculation.

  • Strong non-oil economic expansion, up +4.6% in 2024.

Bread Capital View

Abu Dhabi combines sovereign resilience and steady yield, a long-term environment where governance and selectivity sustain value creation across market cycles.

Dubai

Scale, Liquidity, and Global Appeal

Dubai stands as the Gulf’s most dynamic real estate market, an open, internationally connected hub combining liquidity, transparency, and fast-paced growth. It continues to attract global capital and long-term institutional interest.

Highlights

  • +36% transaction growth in 2024, reaching 226,000 sales.

  • Top 3 global city by transaction volume, after New York and London.

  • USD 207B in real estate investment volume in 2024.

  • Supported by USD 82B invested by Gulf sovereign wealth funds in 2023.

  • Strong legal transparency (DLD / DIFC) and advanced investor protections.

Bread Capital View

Dubai embodies liquidity and accessibility, a fast-moving environment where institutional discipline meets entrepreneurial dynamism. Ideal for short to mid-term capital deployment strategies.


Sources: Numbeo; REIDIN; Asteco; Abu Dhabi DMT – 2024 (latest available data); Savills UAE Market Update Q1 2025; ValuStrat UAE & Abu Dhabi Market Report Q1 2025; REIDIN Residential Price Index 2025; Global Property Guide Rental Yields Q2 2025; Chambre des Notaires de Paris Average Price per sqm Q1 2025; Paris Property Group Market Report 2024; Notaires-Insee 2024; DoorFeed; Global Property Guide, "Square Meter Prices & Gross Rental Yields 2025"
Note: Abu Dhabi & Dubai : Figures reflect mid-to-upper tier residential units in freehold zones accessible to foreign investors. Labour accommodations and leasehold areas are excluded. Gross rental yields represent typical 1–3 bedroom apartments in investment-grade locations.

U.A.E
2025 listing

Sources: Bread Capital Research, DLD, REIDIN (2024).

Disclaimer: Illustrative example only. Not an offer or solicitation.

Illustrative Market Examples

These examples are shown for informational purposes only and do not represent any investment recommendation or portfolio holdings.

One Reem,
Reem Island, Abu Dhabi

Asset type: 2-bedroom apartment with sea view
Developer: SAAS Properties

Size: 212 sqm
Price: USD 898,570 (USD 4,239/sqm)
Gross yield: 8.2-9.7%

Completion: 2023
Status: Ready to move in

Market note:
Premium waterfront property in a flagship district with constrained new supply and strong end-user depth.

Upside Living,
Business Bay, Dubai

Asset type: Studio apartment
Developer: Upside Living

Size: 36 sqm
Price: USD 299,523 (USD 8,162/sqm)
Gross yield: 6.8-8.2%

Completion: 2023
Status: Ready to move in

Market note:
Compact prime unit in a mature urban district with sustained rental liquidity near Downtown and DIFC.

Palace Tower 2,
Dubai Silicon Oasis

Asset type: 1-bedroom apartment
Developer: Tameer Holdings

Size: 70 sqm
Price: USD 176,991 (USD 2,500/sqm)
Gross yield: 10.0-11.5%

Completion: 2009
Status: Ready to move in

Market note:
Mid-market residential cluster with deep rental demand from nearby tech and education hubs. Income stability despite building age.

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This information is provided for informational purposes only and does not constitute investment advice, an offer, or recommendation. Past performance, prices, and yields are indicative and not guaranteed. Actual returns may vary. All rankings, growth figures, and superlatives are based on publicly available sources.