Abu Dhabi’s real estate market recorded its strongest ever half-year performance, with transactions reaching AED 54bn ($14.7bn) in the first half of 2025, according to the inaugural Real Estate Market Report from the Abu Dhabi Real Estate Centre (ADREC).
The sector’s growth was driven by population expansion, foreign investment, and a shift toward premium developments.
The report found that demand continued to outpace supply across the emirate. Abu Dhabi’s residential inventory stood at around 400,000 units in H1 2025, with average supply growth of 2.6 per cent per year since 2022.
Abu Dhabi real estate
By contrast, demand has risen by approximately 6 per cent over the same period.
This structural imbalance has driven significant price growth, with apartment sales prices up 14 per cent year-on-year in Q2 2025, while villa and townhouse prices rose by 11 per cent.
Future residential supply is projected to increase by 4.6 per cent by 2028, adding between 45,000 and 55,000 units.
Real estate transactions reached a record AED54bn ($14.7bn) in H1 2025, a 42 per cent increase compared to the same period in 2024.
Residential sales were a key driver, totalling AED 25bn ($6.8bn), up 38 per cent year-on-year, with sales volumes rising by nearly one-fourth.
Cash transactions accounted for 81 per cent of total sales.
Eng. Rashed Al Omaira, Acting Director General of ADREC, said: “For the first time, investors, developers and policymakers have a single trusted source of insight that shows how the market is performing and where it is heading.
“This inaugural report is a new benchmark for transparency and gives our stakeholders the clarity and information they need to invest with confidence and drive the Emirate’s continued growth.
“Abu Dhabi’s real estate market continues to demonstrate its strength, setting new records in both sales value and volume. The combination of economic growth, international investor confidence, and the delivery of high-quality, master-planned communities is reinforcing the Emirate’s position as a premier destination for investment and living.
“We’re making sure our regulations keep pace with how fast the market is growing, and that buying, selling, or renting in Abu Dhabi is as straightforward as it can be. These steps will help us build on this record performance and keep Abu Dhabi competitive on both a regional and global level.”
Master planned projects accounted for about half of total residential unit sales value in H1 2025.
Al Hudayriat Island led the market with AED2.4bn ($653m) in sales, followed by luxury and mixed-use projects such as Bal Ghaiylam, Mamsha Gardens, and Saadiyat Lagoons.
The premium apartment segment surged, representing 57 per cent of apartment sales value in H1 2025 — more than double its share in 2023. Al Saadiyat Island has emerged as a focal point for ultra-premium launches.
The rental market reflected the same upward trend, with lease values reaching AED 8.2bn ($2.2bn) in H1 2025, up 6 per cent from a year earlier.
Apartment rents rose 21 per cent over the past two years, while villa and townhouse rents increased 7 per cent, underscoring sustained demand in both high-end and family-oriented communities.
ADREC noted that the analytics underpinning the report were generated using proprietary AI tools.
These systems cleanse and enrich national datasets across platforms, enabling scalable, high-quality analysis and insights for Abu Dhabi’s real estate market.
