Today's Edition
SARA ALZAABI (ABU DHABI)
Abu Dhabi is poised to enter a new golden phase for real estate investment if the latest data put out by the the Abu Dhabi Real Estate Centre (ADREC) is any indication.
According to ADREC, Abu Dhabi closed 2025 with one of its strongest real estate performances on record. Total real estate transactions reached a record Dh142 billion from 42,814 transactions, marking a 44% increase in value and a 52% rise in transaction volume compared to 2024.
Foreign Direct Investment in Abu Dhabi’s real estate sector reached Dh8.2 billion in 2025, representing a 13% increase from 2024. Investors came from more than 100 nationalities, with significant contributions from Russia, China, the UK, the US, France and Kazakhstan, highlighting the emirate’s growing global appeal.
The sharp rise reflects both price growth and expanding market participation, reinforcing Abu Dhabi’s attractiveness to long-term investors.
Investment zones attracted significant international attention, with foreign investment accounting for 72% of all real estate investments. Foreign investment value grew 65% to Dh54.13 billion, compared with Dh32.89 billion in the previous year.
“The outcomes recorded in 2025 are not accidental; they reflect a real estate market that has been deliberately shaped around trust, clarity and long-term confidence,” said Rashed Al Omaira, Director General of ADREC.
“ADREC’s role has been to move the sector beyond activity and into maturity by establishing clear governance, reliable data and a regulatory environment that protects investors while enabling sustainable growth. The scale and diversity of transactions seen this year demonstrate that Abu Dhabi has evolved into a market where capital is not only attracted, but retained through confidence in the system,” the ADREC Director General said.
Speaking to Aletihad, Svetlana Politova, CEO of Whitewill Abu Dhabi, said the market’s performance reflects structural strength rather than short-term momentum: “Abu Dhabi’s investment appeal is underpinned by economic stability, regulatory transparency and a clear phase of market expansion.”
She noted that investor confidence continues to strengthen alongside these indicators: "Investor confidence continues to strengthen, supported by consistent performance across key indicators. The 44% increase in transaction value and 52% rise in transaction volume reflect structural market expansion rather than short-term momentum. This level of growth signals widening participation and increasing market depth.”
“Rental income remains a central component of investment strategy in Abu Dhabi. In 2025, studios averaged approximately Dh62,390 per year ($17,000), up 24%, while one-bedroom units averaged around Dh84,410 ($23,000), reflecting 20% growth. Two-bedroom units averaged approximately Dh124,780 annually ($34,000), three-bedroom units around Dh165,150 ($45,000), and four-bedroom homes close to Dh225,705 ($61,500).”
Politova noted that with limited supply, the rental market expanded by 7%, reflecting strong tenant demand and continued appeal for income-focused investors.
International participation is also expected to grow.
“International demand is playing an increasingly important role in shaping Abu Dhabi’s market trajectory. Foreign buyer participation is projected to grow by more than 10% in 2026, reflecting broadening global interest and further diversifying the investor base.”
Politova added that growth is expected to continue across key indicators: “Expected trends include annual sale price growth of 12–15%, rental growth exceeding 10% for apartments, and transaction volume expansion of 30–40%. Abu Dhabi is steadily reinforcing its position as a standalone premium investment centre, characterised by structural expansion, strong rental fundamentals and long-term growth potential.”
