Boom or bubble? What happened to the UAE real estate market over the last 5 years

Spoiler: it’s a real boom. The UAE property market didn’t just survive the pandemic and global turbulence - it turned into a symbol of resilience and investment appeal. According to Business Insider, the UAE ranks among the top destinations attracting wealthy expats. Just in September 2025, a villa on Palm Jumeirah was sold for $44 million - the highest resale villa deal in UAE history.

Prices keep rising - and so does demand

So, what’s happening with prices per square meter? Let’s break it down. Official stats in the UAE usually come in dirhams per square foot, but since we’re talking to an international audience, we’ve converted everything into USD per square meter.

• Back in May 2020, the average price in Dubai was around $2510 per square meter. Only about 1,400 deals were closed that month. The priciest property sold at the time cost $15.8 million. The numbers looked modest, but that was exactly what the global market looked like in the middle of the pandemic.

• Fast forward to April 2025: the average price in Dubai reached $4580 per square meter, and there were over 18,000 transactions in a single month. The top deal? A luxury property sold for $61.2 million.

• In percentages: prices per square meter went up 82.5% in 5 years, monthly transactions skyrocketed by +1158%. Pretty impressive numbers.

Abu Dhabi Takes the Lead

Whenever people talk about UAE real estate, the first name that comes to mind is Dubai. But if we look at the reports, the capital - Abu Dhabi - is actually outpacing it in growth.

• In the first quarter of 2025, average housing prices in Abu Dhabi rose 18% year-on-year. On Saadiyat Island, prices jumped 30%, reaching $12,200 per square meter. Rental prices also shot up 27%, with strong demand in the apartment segment. On Yas Island, over 3,600 new units are expected to be handed over in 2025 alone.

• Dubai is still growing steadily: housing prices there climbed 14% year-on-year, villas remain in high demand, while apartment demand is slightly cooling. Rental prices in Dubai rose just 7%.

Abu Dhabi’s rental market is growing four times faster than Dubai’s.

The Most Popular Emirates - Price Comparison

• Dubai. Over the past 5 years, the transaction volume has grown from $70 billion in 2020 to $142 billion in 2024 so the growth is +102%. The number of deals also doubled - 55,000 in 2020 vs 120,000 in 2024. In 2025, the average price is $3200 - $4070 per square meter.

• Abu Dhabi. In 2020, the housing market was valued at $8 billion, and by 2024 it had already reached $16 billion so the growth is +100%. The number of transactions grows by 15-20% every year. In the first half of 2025, the average price was around $3820 per square meter.

• Sharjah. Distance to Dubai is 20-25 km, to Abu Dhabi about 140 km, making it almost a commuter city for Dubai. Sharjah has become a smart choice for those who work in Dubai but don’t want to overpay. Over the last five years, the market nearly doubled - from $2.5 billion in 2020 to $4.8 billion in 2024. The average price is about $1900 - $2360 per square meter.

• Ras Al Khaimah. Located about 100 km from Dubai and 250 km from Abu Dhabi, this emirate is expanding fast as a resort destination. In the first quarter of 2025, housing prices rose 39% year-on-year. The average price per square meter was $4930 for apartments and $3350 for villas. In the first quarter of 2025, there were 1300 transactions worth $653 million.

• Fujairah. Distance to Dubai is 120-130 km, to Abu Dhabi 270-280 km. It is the only emirate with direct access to the Indian Ocean, which makes it attractive for investors focused on logistics and ports. Real market activity started only in 2024 after roads and port infrastructure were upgraded. By 2025, demand for housing has increased significantly, especially for affordable apartments. The average price is about $1170 per square meter.

• Ajman. Located 40 km from Dubai and 190 km from Abu Dhabi, right next to Sharjah. Like Sharjah, it’s popular among people who work in Dubai but look for more affordable housing. The market became truly active only in 2023. In the first half of 2025, deal values grew by +37%. In 2024, transaction volume reached $5.6 billion across more than 15000 deals. The average price per square meter was around $1220. Prices here are noticeably lower than in neighboring emirates, while demand keeps climbing, making Ajman an increasingly attractive alternative for investors.

Takeaways: Top 6 Emirates for Real Estate Investment in 2025

Over the past five years, the UAE property market has gone from pandemic lows to becoming a true global investment hub.

• Dubai holds on to its status as a global leader, with unmatched liquidity and record-breaking villa sales.

• Abu Dhabi shows the fastest growth in both prices and rental demand.

• Sharjah and Ajman attract buyers with affordable housing and close proximity to Dubai.

• Ras Al Khaimah is booming as a resort destination, with prices climbing 30-40% year-on-year.

• Fujairah is on the rise thanks to ports and logistics. And by the way, it still offers the lowest price per square meter among the main emirates.

Of course, the UAE market is much wider than just these six emirates. Each has its own dynamic. And sometimes, the less hyped areas end up delivering the biggest returns in the future. That’s why in this article we focused on comparing the numbers from just the last five years.