Today's Edition
SARA ALZAABI (ABU DHABI)
Abu Dhabi’s residential real estate market recorded more than 20,000 transactions in 2025, the highest level ever, according to a report by Savills Middle East. This represents a 58% increase compared with the previous year.
Residential transactions in Abu Dhabi City reached an all-time quarterly peak of over 7,500 deals in the fourth quarter of 2025, up from around 6,000 in the third quarter, 3,700 in the second quarter and 3,300 in the first quarter of the year.
The growth was supported by population expansion, strong investor confidence, rising interest from high-net-worth individuals, and the emirate’s stable economy and long-term strategic vision.
Off-plan sales accounted for 80% of transactions in the fourth quarter, with the annual share standing at 75%.
The villa and townhouse segment also gathered momentum, with close to 3,500 transactions recorded in the fourth quarter, accounting for 45% of total quarterly activity. This figure exceeded the combined villa and townhouse transactions reported in the first three quarters of the year.
Apartments remained the core asset class, representing 67% of total market activity in 2025. Rising demand led to price growth, with average annual sales rates increasing by 15%. Prices rose from Dh14,739 per square metre at the end of 2024 to Dh17,145 per square metre by the end of 2025.
Apartment price growth outpaced that of villas, driven primarily by branded residence launches that achieved record-high prices per square metre.
From a supply perspective, while the fourth quarter saw a decline in new launches, the year as a whole recorded unprecedented activity, with more than 70 projects introduced, totalling over 13,500 units.
The share of apartments in total market supply increased to 66% in 2025 from 59% in 2024.
Premium residential segments also expanded significantly during the year, supported by multiple branded residence launches. All 133 Waldorf Astoria Residences Yas units were sold out on launch day, generating Dh850 million in sales.
During 2025, nearly 700 residential transactions exceeded the Dh10 million mark, representing a 47% increase from the previous year. Villas and townhouses accounted for 70% of these transactions, while 13% were priced above Dh20 million, highlighting growing demand for super-prime properties.
Beyond real estate fundamentals, broader development announcements contributed to improved market maturity. These included plans for the opening of Disneyland in 2030.
The expansion of international schools, including King’s College Wimbledon School, Harrow and Gordonstoun, has also enhanced Abu Dhabi’s appeal as a destination for families and investors.
Regulatory initiatives such as the Madhmoun system have further strengthened transparency and confidence in the brokerage sector.
Looking ahead, supply constraints, limited handovers in the coming years and continued economic growth are expected to support sustained demand. Planned expansions, including ADGM’s mixed-use development, are expected to further diversify residential offerings.
Ongoing global wealth migration is also anticipated to underpin growth across prime, super-prime and mainstream housing segments.
