03 October 2025

Abu Dhabi Real Estate Market Hits Record $14.7 Billion in H1 2025

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The capital’s property sector reached its strongest-ever half-year performance, with total transactions surging to AED54 billion ($14.7 billion) — a 42% year-on-year increase, according to the inaugural Abu Dhabi Real Estate Market Report by ADREC (Abu Dhabi Real Estate Centre).

Strong Growth Driven by Demand and Premium Projects

Abu Dhabi’s market boom is fueled by rapid population growth, foreign investment, and rising interest in luxury developments. While the city’s housing supply has been growing by just 2.6% per year since 2022, demand has jumped by about 6% annually — a clear sign that buyers are outpacing new construction.

This imbalance pushed prices upward:

  1. Apartment prices rose 14% year-on-year in Q2 2025.

  2. Villas and townhouses saw an 11% increase.

By 2028, the emirate is expected to add 45,000–55,000 new residential units, expanding total inventory by 4.6%.

Record-Breaking Transactions and Sales

Residential sales were the main driver of growth, totaling AED25 billion ($6.8 billion) — up 38% from the previous year, with sales volumes rising nearly 25%. Notably, 81% of all transactions were cash-based, underscoring investor confidence in Abu Dhabi’s stability and ease of doing business.

Luxury Segments Lead the Market

Master-planned communities accounted for roughly half of all residential sales value in H1 2025.

  1. Al Hudayriat Island led the market with AED2.4 billion ($653 million) in sales.

  2. Other top-performing areas included Bal Ghaiylam, Mamsha Gardens, and Saadiyat Lagoons.

The premium apartment sector alone represented 57% of total apartment sales value, more than double its share in 2023. Saadiyat Island remains a centerpiece for ultra-luxury launches.

Rental Market Remains Hot

Leasing activity mirrored the sales trend, with total rental values reaching AED8.2 billion ($2.2 billion) — up 6% year-on-year.

  1. Apartment rents climbed 21% over two years.

  2. Villa and townhouse rents grew 7%, reflecting strong ongoing demand from families and expatriates.

Data-Driven Transparency

The ADREC report leveraged AI-powered analytics to clean and enrich national datasets, offering a new level of clarity and scalability in understanding market performance. Abu Dhabi is no longer just the political capital — it’s an investment capital. With sustained demand, record sales, and ultra-luxury growth, the emirate is emerging as one of the most promising property markets in the Middle East.

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