Abu Dhabi’s Real Estate Market Achieves Record Growth in H1 2025
Abu Dhabi’s real estate sector has marked an unprecedented milestone, achieving its strongest half-year performance to date. According to the inaugural Real Estate Market Report from the Abu Dhabi Real Estate Centre (ADREC), total transactions soared to AED 54 billion (approximately $14.7 billion) in the first half of 2025. This remarkable growth reflects a combination of factors, including population growth, increased foreign investment, and a notable shift towards premium property developments.
Demand Outstrips Supply
The report highlights a significant imbalance in the market, with demand consistently outpacing supply across the emirate. As of the first half of 2025, Abu Dhabi’s residential inventory comprised around 400,000 units. Since 2022, the average annual growth in supply has been about 2.6%. In stark contrast, demand has surged by approximately 6% during the same timeframe. This discrepancy has led to substantial price increases, with apartment sales prices rising by 14% year-on-year in Q2 2025, while villa and townhouse prices experienced an 11% increase.
Future Projections for Residential Supply
Looking ahead, the future residential supply is expected to grow by 4.6% by 2028, which translates to an addition of between 45,000 and 55,000 units. This projected growth aims to address the current supply-demand imbalance and accommodate the increasing population and investor interest.
Record Transactions and Sales Growth
The real estate market’s performance in H1 2025 is particularly noteworthy, with total transactions reaching AED 54 billion, marking a 42% increase compared to the same period in 2024. Residential sales played a crucial role in this growth, totaling AED 25 billion (around $6.8 billion), which represents a 38% year-on-year increase. Notably, cash transactions accounted for a staggering 81% of total sales, indicating strong investor confidence.
Eng. Rashed Al Omaira, Acting Director General of ADREC, emphasized the importance of this inaugural report, stating, “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.” He further noted that the report sets a new benchmark for transparency, providing stakeholders with the clarity needed to invest confidently.
Master-Planned Projects Lead the Market
Master-planned developments have emerged as a significant driver of sales, accounting for nearly half of the total residential unit sales value in H1 2025. Al Hudayriat Island led the market with AED 2.4 billion (approximately $653 million) in sales, followed closely by luxury and mixed-use projects such as Bal Ghaiylam, Mamsha Gardens, and Saadiyat Lagoons.
The premium apartment segment has seen remarkable growth, representing 57% of apartment sales value in H1 2025—more than double its share from 2023. Al Saadiyat Island has become a focal point for ultra-premium property launches, attracting high-end buyers and investors.
Rental Market Trends
The rental market in Abu Dhabi has mirrored the upward trend observed in property sales. Lease values reached AED 8.2 billion (around $2.2 billion) in H1 2025, reflecting a 6% increase from the previous year. Over the past two years, apartment rents have surged by 21%, while villa and townhouse rents have risen by 7%. This trend underscores sustained demand in both high-end and family-oriented communities.
Advanced Analytics Driving Insights
ADREC has utilized proprietary AI tools to generate the analytics underpinning the report. These advanced systems cleanse and enrich national datasets across various platforms, enabling scalable and high-quality analysis of Abu Dhabi’s real estate market. This innovative approach ensures that stakeholders have access to accurate and actionable insights, further enhancing the market’s transparency and reliability.
In summary, Abu Dhabi’s real estate market is experiencing a transformative period characterized by record-breaking transactions, rising property values, and a robust demand for premium developments. As the emirate continues to attract both local and international investors, the outlook for the real estate sector remains promising.
