Emaar and Aldar lead UAE’s real estate marketJosh Gilbert, Market Analyst at eToro

Dubai, UAE – May 07, 2025:

With strong fundamentals, real estate and construction stocks continue to capture investor attention across the UAE. According to eToro’s recent Retail Investor Beat survey, 52.5% of investors see real estate and construction as the most promising sector over the next 12 months, ahead of even the fast-growing technology sector, which came in at 42%.

Dubai and Abu Dhabi’s property markets remain two of the hottest globally, fuelled by population growth, foreign investment, and demand for premium developments. This strength has translated into solid returns for listed developers in the last year, such as Emaar Properties (+72%) and Aldar (+40%). Aldar’s Q1 results, reported in late April, showed why this real estate is attracting investor attention with a 33% rise in net profit and a 42% jump in development sales. What’s helping businesses like Aldar and Emaar is the UAE’s stable economic environment, which continues to support their growth.

Developers like Emaar and Aldar are also integrating sustainable practices, with projects like Dubai Hills Estate targeting green certifications, enhancing long-term investor appeal.

Although it’s been a great year, the period ahead doesn’t come without risks. Developers across the UAE are growing increasingly concerned about the rising price of key construction components such as steel, aluminium, etc., driven by President Donald Trump’s tariff rollout. Those cost pressures could cloud projects from a timing perspective.

Uncertainty from tariffs could drive investors to focus on stability and yield, something property in the UAE can offer. Therefore, the positive is that real estate in the region will be seen as something of a safe haven, which would mean continued demand for developers. Emaar, for example, doubled its dividend to AED 8.8 billion, fuelled by record property sales and strong market demand. That dividend looks set to keep increasing over the next few years as its cash flow continues to grow with continued market expansion and growth.

Another advantage is the region’s diversified trade relationships, which help cushion against sharp import cost spikes. However, ongoing global supply chain volatility could still push up material costs and pressure short-term profitability.

Real estate remains one of the most dynamic and widely supported sectors in the UAE, with investors clearly bullish on the industry, given that it is a sector that offers both growth and yield opportunities. Global macro headwinds will remain an overhang for the whole world, but the UAE, particularly real estate, looks well versed to navigate the challenges ahead.

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