The UAE property market is heading into the New Year with strong momentum, supported by rising population levels, resilient housing demand and new innovations such as property tokenisation, according to Farhan Badami, Market Analyst at eToro.
“The real estate sector in the UAE continues to enjoy solid structural support,” Badami said. “Ongoing population growth is underpinning housing demand, while emerging technologies like tokenisation are starting to transform how real estate is bought, sold and priced in key centres such as Dubai and Abu Dhabi.”
Both cities are seeing sustained demographic growth that is reinforcing residential demand. Dubai’s population crossed the four-million mark in 2025, after adding more than 208,000 residents over the year.
This expansion, fuelled by job creation, lifestyle attractiveness and long-term residency programmes, has driven property market activity to record levels.
“In 2025, Dubai’s property transactions exceeded AED680 billion, reflecting annual growth of about 30%,” Badami said. “Abu Dhabi is following a similar trajectory, with residential demand rising by roughly 5% to 6% a year, well ahead of new supply coming to market.”
Looking towards 2026, Badami highlighted tokenisation and fractional ownership as key trends to monitor. What was once a conceptual idea is now moving into execution, with Dubai’s Land Department rolling out a pilot project that links blockchain-based property tokens to the official land registry.
“This could be a game-changer for real estate trading,” he said. “Tokenisation has the potential to enable faster, more transparent and efficient transactions, while allowing investors to access fractional ownership and improving liquidity over time.”
Badami added that continued population growth is underpinning off-plan sales, pricing strength and recurring rental income. At the same time, a more mature market is likely to favour well-funded developers with strong land holdings and a proven track record of delivery.
“Innovation such as tokenisation may also create new funding avenues and attract a broader investor base,” he said. “This strengthens the investment case for established developers with significant exposure to residential markets in Dubai and Abu Dhabi.”
From an equity market standpoint, Badami said the property upcycle appears to be driven by fundamentals rather than speculation.
“For companies linked to the real estate ecosystem, including developers and financial institutions, the outlook points to steady earnings growth,” he said. “Improving cash flows also support the potential for sustainable dividend growth, which is likely to be an important theme for income-focused investors in the year ahead.”
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