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Abu Dhabi’s property market cooled in 1Q 2025 as off-plan sales plunged, according to EFG Hermes’ latest Abu Dhabi Property Tracker. The decline was partially offset by a surge in ready-unit sales and mortgage activity, while prices continued to climb.
The big picture: Total transaction value fell 7.7% y-o-y to AED 16.8 bn, with residential activity dropping 34.2% to AED 8.9 bn — the steepest decline across segments. A dip in new project launches from developers triggered the fall.
Ready-units > off-plan sales: Off-plan sales tumbled 78% y-o-y to AED 1.8 bn, reflecting the slowdown in project launches, the report said. Aldar continued to dominate, capturing 62% of all off-plan transactions. By contrast, ready-unit sales rose 57% y-o-y to AED 3.4 bn, driven by strong demand for standalone villas, particularly in budget and affordable areas.
Mortgage transactions also offered a bright spot: Mortgages surged 23% y-o-y to AED 4 bn, making up 42% of total market activity — nearly double last year’s share. 72% of mortgage activity came from non-housing program units, indicating stronger private demand.
Prices continued to rise despite the slowdown in transactions, rising 11.5% y-o-y to approximately AED 11.8k per sqm, supported by gains in both luxury — led by Saadiyat Island — and budget areas like Zayed City. Budget housing accounted for 49% of total transactions, while the luxury segment slipped to 13%, down from 18% in 4Q 2024.
How the leasing market fared: Leasing contract values totaled AED 5 bn across 63.5k agreements. Residential leases made up 63% of total activity, with Al Danah leading demand. Office leases accounted for 20%, while industrial and retail had the remaining share.
ICYMI- Dubai had a stronger quarter: Dubai’s market saw a 7% y-o-y rise in overall activity to AED 179 bn, with off-plan sales up 28% y-o-y to AED 74.2 bn, according to a previous EFG Hermes Dubai Property Tracker. The emirate also saw a 30% rise in mortgage transactions and a 23% y-o-y jump in residential sales to AED 128.6 bn, despite a slight quarterly slowdown.
But not for prices: Average prices dipped 2% q-o-q from a high 4Q 2024 base, with 79% of transactions falling in the budget segment.
