During Cityscape, an annual property show held in Abu Dhabi, the Abu Dhabi Urban Council (UPC), part of the government of the emirate, announced the award of US$5.7bn worth of contracts. The deals were granted to four developers, including Sorouh, the second-largest property company in Abu Dhabi, and involved the delivery of 7,500 homes for Emirati families. The planned completion of all tendered projects is 2012-14. The heavy government intervention in the property market in Abu Dhabi aims to address the shortage of residential premises and the inability of the private sector to shoulder any significant new projects because of tight financing conditions.

The real estate sector in the UAE, but particularly in Dubai and Abu Dhabi, has suffered heavy losses over the past couple of years and continues to experience cancellations, delays and funding difficulties as a result of the reluctance of banks to lend. The onset of a global recession in 2008 triggered the UAE property collapse, causing a slump in prices. Prices are not falling as sharply as in 2009, but demand remains sluggish. According to a rare set of data on the UAE real estate published by the National Bank of Abu Dhabi, the price per square foot for Abu Dhabi residential properties fell by 50% from a peak of Dh2,200 (US$600) in September 2008 to about Dh1,100 in April. The fall (of 64%) was even greater for Dubai residential sales over the same period, where the price plunged from Dh2,200 to just under Dh800 in March 2011. Rents fell dramatically in several residential areas across Dubai, with the decline ranging from 45% to 72%. No similar data on rents were compiled for Abu Dhabi.

Several government-related entities in Abu Dhabi will be investing billions of dollars in residential and commercial projects. In addition to the UPC, Abu Dhabi General Services (Musanada) announced a US$1.9bn housing project, and the Abu Dhabi National Exhibition Centre declared it will deliver 80 waterfront villas for Emirati nationals in the capital.

The government of Dubai, the emirate most affected by the property bubble burst in 2008, created its own scheme to help the real estate sector. In 2010 the Tayseer programme was established, which aims to assist stalled projects in acquiring financing from banks by stamping them as viable ventures and ensuring transparency between financial institutions and developers. Dubai's landscape is plagued by half-finished buildings, whose developers have little chance of negotiating with banks and receiving fresh capital.