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Abu Dhabi’s property market logged its strongest performance to date in 3Q 2025, as the ValuStrat Price Index for residential capital values rose 4% q-o-q and 10.5% y-o-y, according to ValuStrat’s latest report (pdf). That’s up sharply from 1.7% and 5.3% during the same period last year.
Off-plan sales hit all-time high: Off-plan transactions nearly doubled q-o-q (+97.5%) and more than doubled y-o-y (+118%), accounting for 79% of total sales — the highest on record. Average off-plan prices rose 22.4% y-o-y to AED 20.8k per sqm, with ticket sizes averaging AED 3.4 mn. Ready-home transactions grew 12.5% y-o-y to AED 13.9k per sqm, though slipped 1.7% q-o-q.
Mortgage-backed transactions accounted for 67% of total sales, reaching AED 12.4 bn versus AED 8 bn in non-mortgaged purchases. The pickup came as the US Federal Reserve — and subsequently, the Central Bank of the UAE — cut interest rates, easing borrowing costs for buyers.
Villas led annual price growth: Villas posted an 11.6% y-o-y rise in prices during the quarter, while apartments saw faster quarterly growth, rising 4.4% q-o-q. Saadiyat Island led villa gains with a 21.2% price increase, followed by Al Reef (+8.1%) and Al Raha (+7.7%). Among apartments, Al Reef (+13.3%) and Saadiyat Island (+10.5%) saw the biggest jumps. The weighted average home value reached AED 10.8k per sqm.
Rents also saw their strongest annual gains in a year: Residential rents increased 2.3% q-o-q and 9.3% y-o-y, with apartments outpacing villas (+12.8% y-o-y vs +5.6%). Average apartment rents hit AED 120k per year, while villas averaged AED 253k. Occupancy stood at 88.1%, keeping gross yields around 8.1%.
Supply remains tight despite new launches: Only 10.3% of this year’s projected residential pipeline was delivered as of September. Around 33k new units are expected by 2030, two-thirds of them apartments. New projects this quarter included Aldar’s Waldorf Astoria Residences and Yas Living, and Taraf’s 1.4 mn sqm Masdar City community.
Offices and hotels extend rally: Office rents rose 22.7% y-o-y and 3.6% q-o-q amid 90.5% occupancy in central districts, while prices grew 8.7% y-o-y. Hotel occupancy reached 81.5% as of July, with average daily rates jumping 20.7% to AED 544 and revenue per available room climbing 23.7% to AED 443 on sustained tourism demand.
…as did industrial properties: Industrial property prices in the emirate grew at an average of 13.7% y-o-y, while rents increased 10.9% y-o-y at the lower end and 15.5% at the higher end, according to the report.
