Gulf property market booming, with 78.2 billion $ in Q1 2025

Mounir, founder of DRN Dubai Real Estate, a French estate agency in Dubai

By Mounir Redjdal

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The property market in the Gulf states is set to remain buoyant in 2025, with a a record trading volume of 78.2 billion dollars in the first quarter. This impressive performance reflects the region’s growing appeal to both institutional investors and private buyers, who are drawn by innovative projects, stable economic policies and high returns. Among the major successes so far this year, Abu Dhabi, Sharjah and Ajman are characterised by rapid growth, driven by sustained demand and a long-term urban planning vision.

Booming regional capitals

Whilst Dubai remains a key driving force in the region’s property market, Abu Dhabi is showing a significant acceleration. The capital of the Emirates has seen its property transactions soar thanks to government incentive schemes, the diversification of its residential offering and the creation of attractive economic zones. Projects such as Hudayriyat Island and the expansion of Saadiyat are helping to redefine the high-end market, whilst attracting a new influx of expatriates and foreign investors.

Sharjah, which has traditionally been more low-key, is also experiencing exceptional growth. Thanks to more affordable prices, mixed-use developments combining retail, education and housing, and a significant improvement in infrastructure, the emirate is attracting more and more families and investors seeking stability and a good return on investment.

As for Ajman, it is cementing its position as an emerging market, particularly for first-time buyers and regional investors. Its proximity to Dubai, combined with a proactive urban development policy, positions it as a a new, attractive residential and commercial hub.

The drivers of this regional growth

There are several factors behind this surge in property investment in the Gulf:

  • Favourable tax policies, with little or no tax on income or capital gains from property.
  • Ambitious national development plans, incorporating sustainability, the digitalisation of property services and mixed-use development.
  • A stable investment climate, underpinned by proactive governments, sound central banks and a stable currency pegged to the dollar.
  • Population growth, with the continued growth in the expatriate population, drawn by the economic opportunities and quality of life.

A sector undergoing rapid restructuring and professionalisation

Beyond the impressive figures, this boom is accompanied by a greater professionalisation of the property sector. Market participants are increasingly adopting international standards in the areas of transparency, digitalisation and sustainability. Digital platforms now make it possible to buy, rent or sell properties through streamlined procedures and with greater access to market data.

Developers are also banking on the’innovative architecture, eco-neighbourhoods and smart buildings, in order to meet the expectations of a modern and discerning clientele. This qualitative transformation reinforces the region’s ambition to become an international property hub.

Conclusion: a sustainable trajectory for the Gulf

With $78.2 billion in transactions in Q1 2025, the Gulf property sector is entering a new phase of maturity and expansion. Emirates such as Abu Dhabi, Sharjah and Ajman, which had long taken a back seat to Dubai, are now establishing themselves as drivers of growth in its own right.

Driven by a long-term strategic vision, stable governance and sustained demand, The region continues to consolidate its position as one of the world’s most attractive destinations for property investment.

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Mounir Redjdal

Founder of DRN Real Estate

Mounir Redjdal is an entrepreneur and the founder of DRN Dubai Real Estate, a French-speaking estate agency based in Dubai since 2017.

An active investor in the Middle East for over 15 years, he supports international investors with a structured, long-term approach.

Under his leadership, DRN has exceeded €100 million in transactions in 2021 and has established itself in Dubai’s French-speaking market.

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