MAYS IBRAHIM (ABU DHABI)

Total property sales in Abu Dhabi topped Dh164 billion in 2025 driven by price gains across prime communities, attractive investment returns and sustained off-plan activity, according to new data from dubizzle.

The performance was supported by continued government investment in housing, infrastructure and property technology, underpinning increased investor confidence, the platform said in its Abu Dhabi Property Market Insights 2025 report.

“Abu Dhabi’s shift towards a more digitally transparent, investor-friendly environment is well underway, and it’s encouraging to see that progress firsthand,” the CEO of Bayut & dubizzle and CEO of Dubizzle Group MENA, Haider Ali Khan, said in a statement.

The report shows that the ready property market in Abu Dhabi recorded notable price appreciation across key residential areas.

Apartment prices per square foot in Yas Island rose by 17.69% year-on-year, while Al Reef posted a 12.67% increase.

Luxury apartment buyers continued to favour Yas Island, Saadiyat Island and Al Raha Beach, while Al Reem Island, Masdar City and Baniyas led demand in the mid-tier segment.

Affordable apartment purchases were concentrated in Al Reef, Al Ghadeer and Al Shamkha.

Villa prices also climbed, particularly in island developments. Yas Island, Saadiyat Island and Al Jubail Island attracted luxury villa investors, while Al Reem Island, Al Raha Gardens and Al Samha remained popular among mid-range buyers.

Average villa prices in Al Reem Island rose to Dh608,700 in 2025, according to the report.

Investment yields remained attractive across multiple communities. Al Reef delivered the highest apartment return on investment at 9.35%, while Masdar City led villa returns at 8.98%.

Abu Dhabi’s rental market also maintained steady growth, driven by population inflows and demand for quality housing.

Luxury apartment rentals remained the strongest in Al Raha Beach, the Corniche Area and Yas Island, while Al Reem Island, Al Muroor, and Al Khalidiyah dominated the mid-tier segment.

Annual rents reached Dh119,000 in Al Reem Island, Dh54,000 in Al Muroor and Dh96,000 in Al Khalidiyah.

In the villa rental market, Yas Island, Saadiyat Island, and Al Bateen continued to attract luxury tenants.

Mid-tier villa demand centred on Shakhbout City, Al Samha, and Al Raha Gardens, with average annual rents in Al Samha rising to Dh140,000.

Khalifa City and Al Nahyan stood out for witnessing the highest demand for both affordable rental apartments and villas.

Off-plan developments remained a key growth driver, with buyers drawn to new projects offering long-term capital appreciation.

Gardenia Bay in Yas Island emerged as the most sought-after luxury apartment project, alongside Manarat Living in Saadiyat Island and Yas Bay.

Reem Hills in Al Reem Island led the mid-tier off-plan apartment segment, while Fay Al Reeman 2 in Al Shamkha ranked among the most popular affordable villa developments.

Luxury off-plan villa buyers focused on Saadiyat Lagoons, Yas Park Views, and Al Jurf Gardens, while budget-conscious investors showed growing interest in projects on the capital’s outskirts.