Today's Edition
SARA ALZAABI (ABU DHABI)
Abu Dhabi's real estate market began 2025 with growing transaction numbers, reflecting healthy investor confidence, according to a report by Bayut, the UAE's leading property portal.
The upward trend follows the year of 2024, which recorded 28,249 property transactions, a 24.2% year-on-year increase, with a combined transaction value of Dh96.2 billion.
According to Bayut's newly released Q1 2025 market report, foreign direct investment into Abu Dhabi's real estate sector stands at Dh7.86 billion, with capital inflows from over 2,300 international investors spanning 105 countries.
The report mentioned the launch of 38 new off-plan developments and the delivery of 12 landmark projects, which further expanded Abu Dhabi's real estate portfolio.
According to Bayut's analysis, the first quarter showed persistent popularity among budget buyers for areas like Al Reef, Al Ghadeer, Khalifa City, and Al Shamkha.
On the other hand, demand surged in the mid-market segment, with areas such as Al Reem Island, Masdar City, and Al Raha Gardens being targeted by buyers that value amenities and decent pricing.
For aspirational buyers, Yas Island, Saadiyat Island, and Al Raha Beach remained the foremost waterfront investment destinations.
The mid-market segment, which saw healthy search activity in Al Reem Island, Masdar City, Baniyas, Al Samha and Al Raha Gardens, demonstrated a robust performance, reassuring investors about market stability. Apartments in the mid-range sector witnessed price increases of up to 4%, while villa prices saw more moderate appreciations. Worthy of particular note was Al Samha reporting a price increase of 7.20%.
In the affordable apartment category, Al Reef and Al Ghadeer have witnessed exceptional rental yields of 8.38% and 9.95%, respectively.
The mid-market apartment communities, including Al Reem Island, Baniyas and Masdar City, also provided solid returns ranging from 5.57% to 7.60%.
Higher-end apartments in Al Raha Beach, Yas Island and Saadiyat Island have produced rental returns of between 3.88% and 7.37%.
As for the villa segment, Al Reef leads the affordable category with a robust return of investment of 6.45%. Mid-tier villa communities such as Al Raha Gardens and Al Samha provided healthy returns between 5% and 7%.
Premium villa destinations, including Yas Island, Saadiyat Island and Al Raha Beach, remained attractive to investors with yields exceeding 4.55%.
