Abu Dhabi’s residential real estate market closed the latest reporting period with AED 94 billion (≈ USD 25.6 billion) in transactions, reflecting 43.3% year-on-year growth. Activity remained consistent across the year rather than concentrated in short launch cycles, signalling structural demand rather than speculative momentum.
Transactions involved investors from 97 nationalities, reinforcing Abu Dhabi’s position as an internationally accessible ownership market rather than a regionally driven one.
A clear pattern emerged across all segments: capital increasingly flowed into ready and income-producing properties.
Market Performance
Saadiyat Island led Abu Dhabi’s ready-property market by transaction value, recording AED 9.1 billion (≈ USD 2.48 billion). Demand focused on completed beachfront and cultural-district residences, supported by scarcity, tourism-linked rentals, and executive leasing demand.
Yas Island followed with AED 5.86 billion (≈ USD 1.60 billion) in sales and a 79% increase in transaction value year on year. Buyer preference concentrated on secondary properties on Yas Island, where immediate handover, established infrastructure, and proven rental performance reduced execution risk.
Al Reem Island and Al Bahia also recorded steady volumes, driven by end-user demand and mid-market investment strategies. Transaction distribution shows a clear tilt toward districts offering completed stock, operational amenities, and predictable leasing cycles rather than future delivery timelines.
The Ready vs. Off-Plan Dynamic
The structural shift toward ready homes is visible in transaction share:
- 25% in 2023
- 44% in 2024
- 68% in 2025
Off-plan transactions declined by 72.62%, largely due to limited new launches rather than falling demand. Developers exercised tighter supply discipline, while buyers increasingly prioritised certainty of delivery.
Immediate occupancy, instant rental income, and visibility on service charges influenced buyer decisions. Supply constraints across established districts further strengthened pricing power for completed assets.
Investment Fundamentals and Returns
Average residential price appreciation reached 17.3%, supported by constrained supply and rising end-user demand. Villas outperformed apartments in capital growth, while apartments maintained stronger liquidity and rental turnover.
Rental yields remained competitive across prime and secondary districts, supported by professional tenant demand and limited short-term vacancy risk.
Foreign investor participation remained broad. Core buyer groups included investors from Russia, China, the UK, France, and the United States, reflecting both capital preservation and yield-driven strategies.
Relative pricing continues to support Abu Dhabi’s value proposition. Residential property remains approximately 30% more affordable than comparable assets in Dubai, while offering regulated ownership, freehold access, and long-term residency incentives.
