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Abu Dhabi’s real estate sector recorded its strongest-ever half year in 1H 2025, with transactions hitting AED 54 bn as supply tightened in the face of increasing interest, according to Abu Dhabi Real Estate Center’s first real estate market report (pdf).
Demand is outpacing supply, with a 6% interest uptick in 2022-2025 overshadowing the 2.6% supply increase over the same period. Abu Dhabi’s total residential stock reached around 400k units in 1H 2025, growing nearly 2.6% annually since 2022.
The supply-demand gap has translated into sharp price growth, with apartment sale prices jumping 14% y-o-y in 2Q 2025, while villas and townhouses gained 11%.
Transactions hit new records: The total value of real estate transactions reached AED 54 bn in the first half, a 42% increase from 1H 2024, while transaction volumes were up 25%. Residential sales alone contributed AED 25 bn, up 38% y-o-y, with sales volumes rising by nearly a quarter.
Master-planned communities led the market. Sales from 10 areas accounted for over half of total residential sales value. Saadiyat Lagoon led with AED 5.7 bn in transactions, with Hudayriyat Island and Bloom living also performing well.
Rental market follows upward trend: Lease values totaled AED 8.2 bn in 1H 2025, up 6% y-o-y, with a smaller 3% uptick in volumes pointing to tightened supply in the rental market. Apartment rents climbed 14%, while rental prices for villas and townhouses saw a more muted 5% increase.
Residential stock is expected to rise about 4.6% by 2028, equivalent to 45k-55k units, and still lagging behind demand. Around 25k of those will be concentrated in investment zones, with Yas, Saadiyat, and Al Reem islands, along with Madinat Al Riyad and Zayed City, set to see 56% of the pipeline.
ICYMI- ValuStrat reported in 2Q that villa prices rose 10.1% y-o-y and apartment rents 12.5%, expecting sustained growth with just 33k new units due by 2030. Knight Frank said average prices rose by 6.4% q-o-q during 2Q, and similarly forecasts 33.1k new homes by 2029, mostly apartments. Data from the Abu Dhabi Municipalities and Transport Department’s Dari platform showed transactions up 40% y-o-y to AED 52 bn in 1H, driven by launches that sold out within days.
