02 June 2025

Abu Dhabi Property Prices Continue to Rise in Q1 2025

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Despite a drop in transaction volumes, Abu Dhabi’s real estate market continued its upward pricing trend in Q1 2025. According to the latest report from ValuStrat, residential property prices rose by 7.2% year-on-year, reinforcing investor confidence in the long-term value of assets in the UAE capital.

Residential Price Trends: Villas and Apartments on the Rise

  • Villa prices increased by 9.7% year-on-year

  • Apartment prices rose by 4.5%

  • The ValuStrat Price Index reached 125.6 points (base = Q1 2021)

Saadiyat Island led price appreciation, with villa values growing by over 21%. In the apartment segment, areas such as Al Reef and Al Muneera demonstrated consistent upward trends.

Rental Market Performance: Yield Stability

The rental index rose 9% year-on-year, supported by strong tenant demand:

  • Average gross yield across the market: 7.8%

  • Apartments are yielding up to 8.3% annually

  • Average occupancy rate: approximately 88%

These figures underscore the market’s appeal to yield-focused investors seeking consistent returns with minimal vacancy risk.

Transaction Activity: Fewer Deals, Higher Ticket Sizes

While transaction volumes declined by 42.9% quarter-on-quarter, price per square foot and average transaction values increased:

  • Average transaction value rose by 8.8%, reaching AED 2.88 million

  • Ready homes: 930 deals at AED 1,146/sq ft on average

  • Off-plan: 371 deals, AED 1,585/sq ft, with a 19.2% annual increase in average ticket size

This indicates a shift in demand toward higher-quality assets, despite a general slowdown in volume.

Commercial Sector: Rental Demand Grows

  • Office rental rates increased by 31.8% year-on-year, reaching AED 811/sqm/year

  • Industrial and warehouse rental rates saw annual growth between 12% and 18%

  • Occupancy levels in the commercial sector exceed 90%

These trends highlight a parallel rise in business demand and confidence in the emirate’s economic fundamentals.

Investment Outlook

Abu Dhabi continues to deliver strong performance across both residential and commercial real estate sectors. Price growth, solid rental yields, and sustained demand in premium locations — particularly Saadiyat Island, Yas Island, and Al Raha — make the capital a compelling destination for mid- to long-term real estate investment.

SPI Dubai offers expert support in navigating the UAE real estate market. Whether you’re looking for high-yield rental assets or premium off-plan developments with strong capital appreciation potential, our team is ready to assist.

Contact us for a curated portfolio tailored to your investment objectives.