Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Apartment prices and rents recorded their sharpest annual increase in 2025, with sale prices rising 19% and new lease prices climbing 16% when compared to 2024, according to the Abu Dhabi Real Estate Market Report 2025 released by the Abu Dhabi Real Estate Centre (ADREC).
ADREC’s flagship report serves as the definitive source for transparent real estate insights. While the preliminary report issued earlier focused on transaction numbers and values, the full report provides detailed supply and demand analytics, transaction performance metrics, geographic distribution patterns and forward-looking projections through 2030.
The report shows that sustained demand–supply imbalances across sectors continued to support price acceleration. Residential inventory reached about 401,000 units in 2025, while occupied units grew at an annual average of 6.6% between 2022 and 2025, significantly outpacing supply growth of 2.8% over the same period.
Villa performance mirrored this strength, with sales prices increasing 13% year-on-year, while new lease prices rose 7%, and rental growth in investment zones reaching 14%. Rental units account for around 71% of total occupied residential units, reinforcing strong rental yields across the emirate.
Residential supply across the emirate grew at an average annual rate of 2.7% between 2022 and 2025. Real estate supply remains concentrated in Abu Dhabi Region, which accounts for 78% of total stock in 2025, while Al Ain represents 20% and Al Dhafra 2%.
Future supply remains disciplined. Residential stock is projected to grow at an average annual rate of 2.9% through 2030, adding approximately 57,700 units across the emirate. In Abu Dhabi Region, supply growth is expected to accelerate to around 3.5% annually between 2026 and 2030, driven largely by development projects, with about 43,000 new units anticipated from investment zones where 98% of new apartments will be delivered.
Eight major developers account for roughly 74% of the development pipeline through 2030. The eight major developers cited by the report are Aldar, Modon, Bloom, Saas Properties, Radiant Real Estate, Sama Emirates, Eagle Hills, and Reportage.
The report highlights broader economic fundamentals underpinning real estate growth. Abu Dhabi’s population grew by 7.5% in 2024 to around 4.2 million, marking a 51% increase over the past decade. Job growth exceeded 9% in 2024, with professional roles expanding by 6.4%. Non-oil GDP grew 7.6% year-on-year in the third quarter of 2025, with non-oil sectors contributing 54% of total GDP and generating Dh175.6 billion in value added, while overall GDP growth reached 7.7%.
The report also notes that 56 new real estate projects were launched in 2025. ADREC introduced the government Multiple Listing Service (MLS), “Madhmoun”, eliminating 50,000 fake listings and enhancing market transparency.
Transaction activity reached record levels. Total real estate transaction values rose 44% year-on-year to Dh142 billion in 2025, with sales accounting for Dh93 billion. Residential unit sales hit Dh76 billion, up 67% from the previous year. About 87% of residential sales value was conducted in cash, signalling market resilience.
The leasing market also reached new highs, with total residential lease value climbing to Dh17.6 billion in 2025, up 7% year-on-year, while lease volumes grew 3% amid high occupancy rates. Apartments accounted for 73% of total residential lease value.
Commercial sectors recorded multi-year occupancy highs. Retail supply reached 3.8 million square metres of gross leasable area by 2025, with overall occupancy rising to 94% and new lease prices increasing 8% year-on-year. The office market maintained occupancy above 95%, with total supply at 3.4 million square metres and new lease prices rising 11% in 2025.
Rashed Al Omaira, Director General of ADREC, said the report demonstrates Abu Dhabi’s position as "a global real estate destination of choice, with a sector defined not only by growth, but by stability, transparency, and long-term confidence."
He added that demand fundamentals remain strong, supply expansion is disciplined, and price movement is occurring in an orderly and sustainable manner.
"As we look towards 2030, continued planning discipline, advanced digital infrastructure, and strengthened governance will remain central to shaping a resilient real estate ecosystem that supports Abu Dhabi’s position as a leading global destination to live, invest, and thrive."
