UAE 2025: a time of bold decisions and new opportunities

The beginning of 2025 is becoming a remarkable period of observation and analysis for me. Over the years of working in the UAE real estate market, I have learned to see actual trends and opportunities behind the figures and forecasts, and today I would like to share my interpretation and vision of the upcoming changes in the Emirates.

The macroeconomic situation inspires confidence in the future. The World Bank forecasts that the UAE's GDP will grow by 4.1% in 2025, and this is not just a figure - I see behind it real growth in the non-hydrocarbon sector, especially in tourism, real estate and construction. The UAE's central bank is even more optimistic, forecasting 6.2% growth, while the IMF says 5.1%. This range of estimates speaks to the dynamism of the economy and the multitude of growth factors. The stable decline in inflation to 2.4% year-on-year creates a favorable climate for long-term investments. From my experience working with foreign investors, low inflation is one of the key factors making the UAE market more attractive internationally.

The expected easing of monetary policy by the US Federal Reserve will inevitably lead to lower mortgage rates in the UAE. I often explain this correlation to clients: because of the dirham's peg to the dollar, our rates are directly affected by the decisions of the US regulator. Lower rates will make financing more affordable, leading to a significant recovery in the real estate market.

I am particularly impressed by the scale of Dubai's infrastructure transformation. Allocating 46% of the budget to infrastructure development in 2025 is the foundation for a quantum leap in the emirate's development. Behind this figure are concrete projects that will change the city's image and the quality of life of its residents.

A revolutionary step will be the launch of an air cab between Dubai and Abu Dhabi by the end of 2025. Travel time of 20-30 minutes for AED 800-1500 per trip will radically change the perception of distances between the emirates. This is especially important for those who work in one emirate and live in another. Here I see a direct link between infrastructure investment and the increasing attractiveness of different locations for living and investment. Such transportation innovations always lead to increased interest in real estate in both directions of the route.

In the premium segment, we are in for a real breakthrough. The new ultra-luxury location near Bulgari Island, home to three of the world's legendary resorts - Capella, Aman and Rosewood - promises to be a benchmark for luxury real estate. The presence of its marina, exclusive boutiques managed by LVMH and private beaches forms a fundamentally new life format in Dubai. On top of this, the hotel sector is also showing impressive momentum. The opening of Ciel at Dubai Marina - the highest hotel in the world with infinity pool on the 82nd floor, as well as Jumeirah Marsa Al Arab with ten restaurants and a three-storey spa center and Mandarin Oriental Downtown with sky-bar and impressive spa complex will complete the portfolio of exclusive offers of the Emirate.

A significant event for the real estate market will be the introduction of Smart Rental Index, an innovative system for calculating rental rates using artificial intelligence. This revolutionary solution will bring unprecedented transparency to the rental segment and help create fairer prices. In addition to this trend, the strengthening of the environmental agenda will also reach a new level. From January 1, 2025, Dubai is expanding its plastic ban, including containers, disposable Styrofoam cups, and plastic straws. The construction industry is also affected. More and more projects are being implemented taking into account the principles of sustainable development.

The development of coastal locations deserves special attention. Dubai Islands, Dubai Maritime City and Palm Jebel Ali. Based on many years of market observation, I am confident that these projects will become the new centers of premium living in the emirate. Investor interest in these locations is already exceeding our expectations.

As I predicted earlier, a construction boom will be in Ras Al Khaimah. Contrary to the fact that for a long time this emirate has been undervalued in terms of investment, it will now rewrite the rules of the game. The impending opening of the UAE's first Wynn casino resort in 2027 is already driving up real estate prices in the emirate. Therefore, I recommend paying attention to this region - the growth potential here is far from exhausted.

In conclusion, 2025 will be a period of qualitative transformation for the UAE. Technology development, large-scale infrastructure projects, and well-considered economic policy in symbiosis form inexhaustible opportunities for life and investment. Our team closely monitors all the changes to make the most of the opportunities.