Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Abu Dhabi’s real estate market achieved its strongest half-year performance on record in the first six months of 2025, with total transaction values rising 42% year-on-year to Dh54 billion, according to the inaugural Abu Dhabi Real Estate Market Report released by the Abu Dhabi Real Estate Centre (ADREC).
ADREC’s earlier figures are updated with data from Al Reem Island and Al Maryah Island provided by Abu Dhabi Global Market (ADGM).
The report highlights that sustained demand growth, outpacing supply, and a shift towards premium master-planned communities have reinforced the capital’s status as one of the most dynamic real estate markets in the region.
Total real estate transactions reached Dh54 billion in H1 2025, compared with Dh38 billion in the same period last year. Volumes also grew by around 25% to 15,578 transactions, underscoring broad-based momentum across the market.
Residential unit sales set a new semi-annual record of Dh25 billion, up 38% from H1 2024, while sales volumes rose 23%. Cash remained the dominant payment mode, accounting for 81% of total sales.
High-value developments were pivotal to this performance. The top ten projects collectively contributed about Dh11 billion, nearly half of residential sales value. Al Hudayriyat Island led with Dh2.1 billion in sales, followed by Bal Ghaiylam, Mamsha Gardens and Saadiyat Lagoons.
The emirate’s total residential inventory reached approximately 400,000 units in H1 2025, with an average annual supply growth of 2.6% since 2022. By contrast, demand has been expanding at nearly 6% annually, creating a structural imbalance that has translated into strong price appreciation.
Apartment sale prices rose 14% year-on-year in Q2 2025, while villa and townhouse prices increased 11%. Looking ahead, residential supply is projected to grow by about 4.6% by 2028, adding 45,000–55,000 units, which ADREC sees as a clear opportunity for further investment.
Abu Dhabi’s leasing market mirrored the sales surge, with total lease values reaching Dh8.2 billion in H1 2025, up 6% compared with last year. Apartment rents rose 14% and villa/townhouse rents by 5% over the past year, driven largely by demand for high-end communities.
Notably, 92% of total lease value was concentrated in the Abu Dhabi Region, reflecting the continuing preference for centrally located and lifestyle-oriented developments.
The premium and luxury segment has become a defining driver of market performance. In H1 2025, luxury apartments represented 57% of total apartment sales value—double their share in 2023. Most of these transactions were concentrated on Saadiyat Island, where new launches such as Nobu Residences, The Fountain View and Saadiyat Grove commanded the highest per-square-metre prices, some exceeding Dh70,000.
In villas and townhouses, more than 70% of sales volumes were in the mid-to-high range segments. Projects like Nawayef on Al Hudayriyat Island, Saadiyat Lagoons, and Yas Riva underscored the shift towards larger, lifestyle-driven offerings.
Foreign buyers continue to play a pivotal role. Between 2019 and 2024, non-resident foreign purchases increased twelvefold, while sales by resident expatriates quadrupled. In H1 2025, expatriate residents and non-resident foreigners accounted for about 65% of residential unit sales, underlining Abu Dhabi’s global appeal.
Indian, British, Russian, and American investors were among the top foreign nationalities, with Saadiyat, Yas and Reem Islands attracting the bulk of their activity.
Ten districts contributed more than half of total supply and 82% of sales value in H1 2025. Saadiyat Island alone accounted for one-third of sales value while only contributing 17% of volumes, highlighting the premium attached to its luxury stock. Reem Island and Yas Island together drove 41% of sales volumes, reflecting strong end-user and investor demand for waterfront and leisure-centric living.
Eng. Rashed Al Omaira, Acting Director General of ADREC, noted that the report marks a new benchmark for market transparency:
“For the first time, investors, developers and policymakers have a single trusted source of insight that shows how the market is performing and where it is heading. Abu Dhabi’s real estate market continues to demonstrate its strength, setting new records in both sales value and volume.”
He added that ADREC is working closely with developers and international investors to diversify the market landscape while ensuring regulations keep pace with growth:
“We are making sure our regulations keep pace with how fast the market is growing, and that buying, selling, or renting in Abu Dhabi is as straightforward as it can be. These steps will help us build on this record performance and keep Abu Dhabi competitive on both a regional and global level.”
Looking ahead, ADREC projects residential supply to rise by about 64,000 units by 2028, with investment zones such as Saadiyat, Yas, Reem and Al Hudayriyat Islands accounting for much of the pipeline. Seven major developers, including Aldar, are expected to deliver 77% of upcoming stock, spanning luxury apartments, villas, and government-backed housing schemes.
At the same time, initiatives such as the Madhmoun platform—a multiple listing service launched by ADREC to eliminate fake listings—are set to further enhance transparency and investor confidence.
Abu Dhabi’s real estate sector has entered 2025 on a record-breaking trajectory, powered by population growth, foreign investment, and an unmistakable shift to premium communities. With demand consistently outpacing supply and a strong regulatory framework under ADREC, the outlook remains positive for both investors and residents.
As Al Shorafa emphasised, real estate is poised to remain both a “driver of prosperity and a foundation for inclusive, sustainable growth”.
