Today's Edition
MAYS IBRAHIM (ABU DHABI)
Abu Dhabi’s real estate sector is witnessing “unprecedented” demand, as international buyers and investors pour into the UAE capital, drawn by its reputation for safety, tax-free investment climate, and growing portfolio of luxury developments, according to sector representatives.
At the 14th edition of the International Real Estate Investment Show (IREIS 2025), Abu Dhabi-based real estate agencies and developers told Aletihad that demand is outstripping supply with many new projects selling out at launch.
“The demand is very high in Abu Dhabi’s realty market. We are receiving inquiries from investors and buyers from all over the world – about a 1,000 a day,” said Mohamed Hassan, team leader at Mirage Capital Property. “Everyone is ready to buy property in Abu Dhabi.”
This appetite has translated into rapid price growth. According to global property consultancy Knight Frank, average residential prices in Abu Dhabi rose by 6.4% quarter‑on‑quarter, reaching Dh1,230 per sq.ft in Q2 2025.
These figures bring total annual growth in the emirate to 17.3% – a 31.3% increase in values since Q1 2020.
Villas have been the standout performer, with prices on Saadiyat Island climbing 28% year-on-year, and Yas Island villas up 22%.
Industry representatives say lifestyle-driven demand is fuelling the surge. Buyers are favouring villas and townhouses on Saadiyat, Jubail, and Yas islands, according to Hassan.
“After the announcement that Disney will open in Abu Dhabi in five years, property prices saw an immediate 15-20% jump,” he noted. “Most of the stock we have on Yas Island is now sold out.”
Market data confirms the boom. Data released by the Abu Dhabi Real Estate Centre (ADREC) shows that real estate transactions in the first half of 2025 increased by 39% year-on-year to Dh51.72 billion, driven by a notable increase in sales, purchases, and mortgages.
DARI, Abu Dhabi's official digital real estate ecosystem, last week reported that the value of this year’s real estate transactions in Abu Dhabi has so far reached Dh61.15 billion.
For industry players, Abu Dhabi’s appeal rests on its investor-friendly policies and high quality of life.
“Abu Dhabi stands out as one of the most secure and investor-friendly market,” Hassan said. “With no personal income tax, no capital gains tax, and no property tax, clients maximise the full value of their real estate investments.”
Muhammad Shoaib, CEO of Capstone Real Estate LLC and Board Member at Vertix Holdings LLC, echoed this sentiment, highlighting long-term visas and easier access to financing as key drivers.
“Golden visas are fuelling demand for high-end homes in the UAE significantly. Even non-residents can invest in properties with competitive rate loans, which very few countries allow,” he said.
“Strong regulation and compliance have built investor trust, and we’re seeing exceptional interest from markets like the UK and Russia, especially for luxury properties.”
Shoaib also pointed to Abu Dhabi’s cultural vibrancy and coastal setting, defined by an archipelago of islands, as part of its appeal.
Developers are racing to expand supply in the emirate, according to recent reports. Cavendish Maxwell said that Abu Dhabi’s housing supply is expected to exceed 11,900 units in 2025.
Knight Frank estimates that more than 33,000 homes are currently under construction in Abu Dhabi, scheduled for delivery by 2029.
In statements made available to Aletihad, Andrea Nucera, CEO and Managing Director of Reportage Group, noted that Abu Dhabi remains one of the world’s most attractive investment destinations, offering stability, sustainability, and long-term value.
“At Reportage, our vision goes beyond constructing buildings, we focus on creating modern communities that are accessible, sustainable, and designed for the future. Every project we deliver is built on the principles of long-term value, quality, and trust.”
Ranked as the safest city in the world for the ninth consecutive year, Nucera noted that Abu Dhabi promises residents and investors peace of mind, further strengthening its global appeal.
