The UAE’s real estate sector continues to shine, with Emaar Properties and Aldar Properties leading a surge in stock prices. The thriving property market in Dubai and Abu Dhabi has garnered significant investor attention, solidifying real estate and construction as one of the most promising sectors for the next year.
A recent Retail Investor Beat survey by eToro revealed that 52.5% of investors consider real estate and construction the most promising sector, surpassing even the fast-growing technology sector, which attracted 42% of investor interest. The UAE’s real estate market has been bolstered by strong fundamentals such as population growth, increasing foreign investments, and the rising demand for high-end developments. 
Dubai and Abu Dhabi’s property markets are now two of the most lucrative globally. Emaar Properties and Aldar Properties have delivered impressive results. Emaar’s stock price surged by 72% last year, while Aldar saw a 40% increase. In April, Aldar reported a 33% rise in net profit and a 42% jump in development sales, signaling that investors are optimistic about the future. The stable economic environment of the UAE has been key to this growth, fostering favorable conditions for real estate developers.
Moreover, UAE-based developers are focusing on sustainability. Projects like Dubai Hills Estate aim for green certifications, making them even more attractive to long-term investors. As sustainability becomes a key factor in the global real estate market, UAE developers’ efforts in this direction are likely to enhance their appeal.
However, not all is entirely smooth sailing. Construction costs, particularly for materials such as steel and aluminum, have been rising due to tariffs, particularly those imposed by the US under President Donald Trump’s administration. These cost pressures could delay or raise the costs of construction projects. Despite this, the UAE real estate market remains resilient, as evidenced by Dubai’s all-time high monthly sales record of Dh62.4 billion in April, a 95.3% increase from the previous year.
Additionally, the number of transactions across the real estate market in Dubai has soared. In April alone, there were 3,223 villa sales, marking a 134% rise in volume and generating Dh23.7 billion in sales. The primary property segment also saw significant growth, with Property Finder reporting a 124% increase in sales, which reached Dh34.2 billion.
While the rising cost of materials is a concern, investors are still turning to real estate in the UAE as a safe haven for stable returns and strong yields. The diversified trade relationships of the region also help cushion against sharp cost increases. However, global supply chain issues could continue to impact short-term profitability.
Emaar has also capitalized on the boom in the real estate market, doubling its dividend to Dh8.8 billion. With strong market demand and record sales, Emaar’s cash flow is expected to continue growing, and dividends are projected to rise further in the coming years.
Despite the global economic challenges, the UAE’s real estate sector, especially in Dubai and Abu Dhabi, remains one of the most dynamic and promising sectors in the region. With its robust growth prospects, investors are bullish on real estate, viewing it as an industry with both growth potential and consistent returns.
