UAE real estate assets to accelerate from Dh2.5 trillion due to high demand

The UAE’s real estate sector is poised to witness a significant influx of global private capital, institutional investments, and international family office funds as the market continues to mature and diversify.

According to Amit Goenka, Chairman and Managing Director of Nisus Finance, the total value of real estate assets in the UAE has already surpassed $680 billion (Dh2.5 trillion), and this figure is expected to grow rapidly in the coming years. This growth is driven by rising demand and global economic shifts—particularly those influenced by the ongoing US-China trade tensions.

“In today’s landscape, the UAE’s real estate market represents assets worth approximately $680 billion and is on track for accelerated expansion,” Goenka said in an interview with Khaleej Times. “With favorable US tariff structures for GCC nations compared to China and other Asian markets, we foresee a strategic shift in global manufacturing, 3PL logistics, light assembly operations, and service sectors towards the GCC. Dubai, in particular, stands out as a regional hub for human capital and innovation, placing the UAE in a uniquely advantageous position to capitalize on this shift.”

“The ongoing relocation of businesses to the UAE—driven by growth in manufacturing, logistics, technology, and finance—is expected to attract a diverse talent pool, ranging from blue-collar workers to senior executives and their families. This migration will naturally fuel sustained demand for residential properties. The UAE’s well-established ecosystem, offering a high standard of living, world-class healthcare, exceptional safety, and a highly attractive tax environment, continues to be a major magnet for capital, talent, and enterprises. These factors are set to keep the real estate market resilient and buoyant over the long term.”

Over the past four years, the UAE has witnessed exponential growth in land and property transactions, reflecting the sector’s robust momentum. Transaction values surged from Dh300 billion in 2021 to Dh528 billion in 2022, followed by Dh634 billion in 2023. In 2024, the market reached a new milestone, with the total value of property transactions climbing to Dh761 billion (approximately $207 billion), underscoring sustained investor confidence and the growing appeal of the UAE’s real estate landscape.

“The sector is currently experiencing a Compound Annual Growth Rate (CAGR) of over 30 percent, indicating a projected increase of approximately US$60 to US$70 billion in additional sales this year, up from US$205 billion in the previous year,” he explained. “At this pace, total sales are expected to reach between US$270 billion and US$280 billion by the end of the year, reflecting the sector’s remarkable momentum and sustained investor interest.”

The UAE’s real estate sector is poised for a substantial influx of global private capital, institutional investments, and funding from international family offices as the market continues to mature. Backed by a robust regulatory framework that encourages foreign investment, capital from around the world is pouring into the UAE to bridge a widening real estate funding gap, currently estimated at US$100 billion. Additionally, the market is witnessing a growing shift toward digitization, with innovative models such as cryptocurrency transactions, tokenization, virtual assets, crowdfunding, and fractional ownership gaining momentum.

Nisus Finance, a leading financial institution, plays a key role in channeling global capital to accelerate the growth of Dubai’s real estate sector. Specializing in urban infrastructure finance and private capital market transactions, the firm is at the forefront of addressing this funding gap.

“The real estate financing requirement is expected to rise from US$100 billion to approximately US$130–140 billion this year,” said Amit Goenka, Chairman and Managing Director of Nisus Finance. “Within this, we are targeting select high-potential opportunities. Our immediate goal is to launch a US$1 billion fund, with a long-term ambition of mobilizing up to US$5 billion in private capital to support sector growth.”

If the surge in housing demand continues at its current trajectory, the funding gap could widen even further. “To sustain this growth, annual funding needs are increasing significantly, and institutional capital alone cannot meet this demand,” Goenka noted. “The remainder will have to come from equity contributions and off-plan sales.”

He further explained, “Of the current estimated US$100 billion funding gap, only around US$30 billion is being met by financial institutions, banks, and established funds. This leaves a significant US$70 billion shortfall—an untapped opportunity where private capital, credit, and equity will be essential to maintain momentum.”

Beyond traditional real estate segments such as residential, commercial, and retail developments, Goenka highlighted growing investor interest in industrial logistics and warehousing. “We are seeing strong demand in the industrial and warehousing sector, which alone could attract an additional half a billion dollars in investments,” he added.

Amit Goenka, MD & CEO of Nisus Finance

Amit Goenka observed that while the UAE has traditionally been perceived as a global trading hub rather than a long-term investment destination, that perception is rapidly changing. “Thanks to the extraordinary vision of the Rulers, who have laid down future-ready foundations, we are now witnessing a paradigm shift,” he said. “The UAE has transformed into a compelling destination for global capital, supported by a strong regulatory framework, progressive government policies, and a highly supportive business ecosystem.”

Goenka also highlighted a notable trend among the next generation of local family offices. “We are seeing a generational shift, where younger family members are moving away from legacy real estate holdings and are actively seeking exposure to new-age investment opportunities,” he said. “These include cryptocurrency, tokenization, virtual assets, and deep tech ventures. As a result, legacy portfolios are increasingly being dismantled or sold to global investors—including through our DIFC-based fund—and the capital is being redeployed into high-growth areas.”

This transition is being enabled by robust family office regulations in both the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM), empowering the next generation to take charge of family assets and investment strategies.

As part of this evolution, the Dubai Land Department (DLD) recently launched a real estate tokenization pilot project. The initiative is expected to catalyze significant expansion in the sector, with the tokenization market projected to reach Dh60 billion by 2033—equivalent to 7 percent of all real estate transactions in Dubai.

“We definitely intend to be part of this initiative,” Goenka confirmed. “Tokenization and virtual assets represent the next frontier of real estate investing. The global market for tokenized assets is forecast to triple in size—from around US$16 billion to over US$53 billion in the coming years.”

Regulatory bodies such as ADGM are playing a vital role in fostering this transformation, offering infrastructure for blockchain-based platforms and real estate token markets. “The ecosystem is ready. What we now need is broader international participation,” he added. “We are also witnessing rapid advancements in real estate crowdfunding, supported by the digitization of title deeds and the shift toward fully online property registration processes.”