AMEINAH ALZEYOUDI (ABU DHABI)
Abu Dhabi’s real estate market recorded a year of consistent and balanced growth in 2025, according to the annual UAE real estate report by Reliant Surveyors.
The emirate’s residential market performed strongly, with notable increases in both prices and rents across apartment and villa segments.
Supported by solid demand from tenants and end users, apartment sale prices surged by about 35% year on year, while rental rates rose by more than 23%. “The relatively close movement between prices and rents indicates balanced growth across both ownership and leasing segments,” the report said.
Villa properties also recorded gains, with rental rates climbing by more than 11% and sale prices rising by almost 14% over the year.
According to analysts, the strong correlation between price and rental increases reflects balanced market conditions, underpinned by genuine housing demand and steady growth in resident incomes.
On the supply side, Abu Dhabi maintained a measured and disciplined development approach. Just over 95,000 completed residential units were available in 2025.
Residential supply is projected to increase to 111,699 units in 2026 and 120,889 units in 2027, supported by a manageable construction pipeline.
Units under construction remain contained at 16,456 units in 2026 and 9,190 units in 2027, indicating an orderly transition into completed stock.
Apartments and serviced apartments continue to dominate the supply mix, accounting for 67,921 units, while villas total 27,322 units, reflecting a balanced delivery profile aligned with demand patterns.
The report noted that this planned release of supply has helped prevent abrupt fluctuations in rents and prices, supporting the market’s long-term sustainability.
Rental yields in Abu Dhabi remained relatively stable throughout the year. Villa yields hovered around 4.8%, while apartment yields averaged about 6.8%, indicating a balanced relationship between capital appreciation and rental income.
“These yields continue to draw long-term investors looking for consistent returns rather than quick profits when compared to other regional markets,” the report said.
The performance of the property market was supported by the emirate’s broader economic environment. Strong growth in the non-oil sector, government-led development programmes and sustained investor activity contributed to macroeconomic stability, reinforcing confidence among developers, investors and residents and supporting steady demand for residential real estate.
“2025 reflects a market that is expanding on strong structural foundations. Dubai continues to witness capital value growth driven by off-plan momentum and sustained demand across residential segments, while Abu Dhabi presents a more balanced trajectory with income-supported growth and rental alignment,” Amrita Chandhok, Partner, Valuation & Advisory Services, Reliant Advisors said.
“Together, these dynamics highlight a maturing real estate cycle shaped by disciplined development, evolving supply pipelines, and long-term urban planning,” it added.