Investment Rating - The report does not explicitly state an investment rating for the real estate industry in Dubai and Abu Dhabi Core Insights - The Dubai Land Department has launched a tokenised real estate platform allowing investments starting from AED2,000, with expectations that tokenised assets will represent 7% of Dubai's real estate market by 2033, equating to around AED60 billion in value [2] - Residential sales prices in Dubai increased by 5.7% in the first four months of 2025, indicating a slowdown compared to previous years [3][22] - In contrast, Abu Dhabi's residential sales prices increased by 7.0% in the same period, showing a stronger growth trend [4][41] - The rental market in Dubai has also seen a slowdown, with a 4.1% increase in rents in the first four months of 2025, compared to 15.7% in 2024 [3][51] - Abu Dhabi's rental values increased by 8.9% in the first four months of 2025, driven primarily by apartments [5][59] Summary by Sections Residential Market - Dubai's residential sales prices increased by 5.7% in early 2025, down from 18.0% in 2024 and 20.1% in 2023, indicating a slowdown [3][22] - Abu Dhabi's residential sales prices increased by 7.0% in early 2025, compared to 11.1% in 2024 and 5.0% in 2023 [4][41] - Rental values in Dubai increased by 4.1% in early 2025, down from 15.7% in 2024, while Abu Dhabi saw an 8.9% increase in rents [3][51][59] Supply Trends - The residential supply in Dubai is expected to increase significantly by 2027, with approximately 16% of the current supply expected to be added [5] - Abu Dhabi is also expected to see a rise in residential supply, with around 12% of the current stock anticipated to be added by 2027 [5][44] - The office market in Abu Dhabi is projected to add approximately 7% to the current stock by the end of 2027, while Dubai's office market is expected to add about 3.5% [6][68] Retail Market - The retail market in Dubai is expected to see limited additions, with only about 1.6% of the current stock expected to be added by the end of 2027 [7][72] - Abu Dhabi's retail market is projected to see a slightly higher increase of around 5.6% [7][72] Hospitality Sector - Dubai currently has a stock of 154,800 hotel rooms, with an additional 4,500 rooms forecasted to be delivered by the end of 2024 [77] - Abu Dhabi has a current stock of 32,800 hotel rooms, with another 540 rooms expected to be delivered by the end of 2024 [79]