{"id":103637,"date":"2025-05-14T00:00:00","date_gmt":"2025-05-14T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/abu-dhabi-homes-get-pricier-in-1q\/"},"modified":"2025-05-14T00:00:00","modified_gmt":"2025-05-14T00:00:00","slug":"abu-dhabi-homes-get-pricier-in-1q","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2025\/05\/14\/abu-dhabi-homes-get-pricier-in-1q\/","title":{"rendered":"Abu Dhabi homes get pricier in 1Q"},"content":{"rendered":"

Abu Dhabi\u2019s property market kicked off 2025 with its strongest cap<\/strong>ital gains in <\/strong>three years<\/strong>, with broad-based growth across residential, commercial, hospitality, and retail segments, according to ValuStrat\u2019s latest report (pdf)<\/a>. <\/p>\n

(Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.)<\/p>\n

Residential prices and rents continued to rise: <\/strong>The ValuStrat Price Index for Abu Dhabi\u2019s residential market rose 2.1% q-o-q and 7.2% y-o-y \u2014 the fastest annual increase since 2022. Villas led the gains, with prices up 2.7% q-o-q and 9.7% y-o-y, while apartment prices climbed 1.5% q-o-q and 4.5% y-o-y. <\/p>\n

Apartment rents outpaced villas<\/strong>, surging 11.6% y-o-y and 3.4% q-o-q. Villa rents rose 6.3% y-o-y and remained flat q-o-q. Average gross yields across the residential market stood at 7.8%, with occupancy estimated at 88.1%.<\/p>\n

Sales activity was mixed amid tight supply: <\/strong>Off-plan sales volumes dropped 79.2% y-o-y and 57.7% q-o-q as new launches slowed. Meanwhile, just 2% of the 2025 residential pipeline was delivered in 1Q. Still, the average ticket size for off-plan units jumped 19.2% y-o-y to AED 3.6 mn. <\/p>\n

Meanwhile, ready home sales climbed 13.6% y-o-y but fell 33.6% q-o-q. <\/strong>The average ready home price increased 5.8% y-o-y, while average ticket size rose 23.8% y-o-y to AED 2.6 mn.<\/p>\n

REMEMBER- More supply is on the horizon: <\/strong>Cushman & Wakefield expects around 8.5k<\/a> new residential units to be delivered this year, particularly in Yas Island, Reem Island, Saadiyat Island, and Al Maryah Island. Off-plan launches on Hudayriat Island and Masdar City are also expected to boost unit handovers through to 2027. <\/p>\n

Commercial, hospitality, and retail segments remained resilient: <\/strong><\/p>\n