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UAE real estate to experience 8% CAGR until 2027

Article-UAE real estate to experience 8% CAGR until 2027

Foggy atmosphere within Dubai Marina's skyline
The UAE’s prosperous real estate market is expected to continue growing at a steady rate, albeit to a lesser extent than in previous years.

According to Unique Properties, the UAE real estate market is expected to grow at a Compound Annual Growth Rate (CAGR) of 8% between now and 2027.

This robust growth forecast is largely influenced by visa reforms, an injection of investors from Europe, and the international attractive real estate market that the UAE now has.

The UAE's growth is being fuelled by consistent improvements in areas such as human capital and commercial activities. According to the 2022 Global Cities Index, Dubai and Abu Dhabi both improved their status, with the former maintaining its dominance in Mena and the latter recognised as a top-ten city for the foreseeable future by the Global Cities Outlook.


By allowing both investors and highly qualified professionals to apply for visas, the UAE's government has made it possible for this expansion to occur. The recently introduced Green Visa and the Golden Visa have had an uptake of more than 150,000 people each so far. So, these Visa programmes are improving the ability of the UAE and its real estate market to sustain itself. Moreover, the UAE's resilience in turbulent times has been strengthened by the unquestionable stability the nation offers as well as its alluring advantages like tax-free incentives.

Some of the world's most attractive property markets are expected to experience double-digit price drops as a result of growing financial constraints brought on by banks' rapidly raising interest rates. Sydney and Stockholm are just two examples of the real estate markets around the world being massively impacted by this.

But Unique Properties highlight that The UAE is likely to perform better than these markets. This is because of aspects like its advantageous geographic position, unmatched reputation for safety, and skilful management of the recent pandemic. German, French, and Russian buyers of UAE real estate are also growing, which reflects the high trust levels among international buyers.


The UAE is becoming rapidly associated with high-net-worth individuals (HNWIs). The country is home to some 70,000 millionaires. As they seek prized assets across the world, these affluent investors are significantly boosting the nation's real estate market. This has helped the economy of the UAE with this year seeing the most expensive real estate sales in Dubai's prime residential market, with prices ranging from AED128 million to AED598 million.

Also, the UAE’s real estate market is supported by solid foundations that will allow it to survive the impending global recession that many experts have anticipated, even though prices are expected to stabilise shortly. The UAE has demonstrated its ability to withstand hardship, so its real estate market is well-positioned to continue making significant strides.


Knight Frank also ranks Dubai top of “The Knight Frank Prime Global Index Q3 2022” based on the average annual percentage change from Q3 2021 to Q3 2022. Dubai witnessed a monumental 88.8% increase. This significantly dwarfs the next largest increases seen in Miami (30.8%), Tokyo (17.0%), Los Angles (13.6%), Australia’s Gold Coast (11.3%), Zurich (10.7%), and Edinburgh (9.9%).

But as a whole, Unique Properties expects this growth to begin levelling out to a more sustainable growth rate.

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