Abu Dhabi, UAE – Abu Dhabi’s property sector delivered its strongest half-year performance on record, according to the inaugural Abu Dhabi Real Estate Market Report released by the Abu Dhabi Real Estate Centre (ADREC).
The regulator said total real estate transactions in the first half of 2025 reached AED 54 billion, a 42% year-on-year increase. Residential unit sales were the main driver, with deals worth AED 25 billion, reflecting a 38% surge compared to H1 2024. Sales volumes rose by nearly a quarter, while cash purchases dominated at 81% 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.”
Supply-Demand Imbalance Driving Price Growth
Demand continues to outpace supply in Abu Dhabi. The emirate’s residential stock stood at around 400,000 units in H1 2025, growing by 2.6% annually since 2022. Demand, however, has risen at roughly 6% per year.
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This imbalance has pushed prices higher. Apartment sales rose 14% year-on-year in Q2 2025, while villa and townhouse prices climbed 11%. ADREC estimates future residential supply will grow by about 4.6% by 2028, adding 45,000–55,000 units, opening further investment opportunities.
Master-Planned Communities Lead Growth
Large-scale developments were central to market momentum. The top 10 master-planned projects accounted for half of total residential unit sales value in H1 2025.
Al Hudayriat Island led with AED 2.4 billion in sales, followed by Bal Ghaiylam, Mamsha Gardens, and Saadiyat Lagoons. Premium apartment sales have more than doubled their share since 2023, now making up 57% of apartment transactions by value. Saadiyat Island has emerged as the hub for ultra-premium launches.
Rental Market Mirrors Upward Trend
Leasing activity also gained strength. Total lease values hit AED 8.2 billion in H1 2025, up 6% from the previous year. Apartment rents jumped 21% and villa/townhouse rents rose 7% over the last two years, underscoring continued tenant demand in both luxury and family-focused communities.
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ADREC said the report was built using proprietary AI tools that cleansed and enriched national datasets, enabling scalable, high-quality analysis for stakeholders.
Outlook For Investors
“Abu Dhabi’s real estate market continues to demonstrate its strength, setting new records in both sales value and volume,” Al Omaira added. “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.”
For Indian investors in Dubai and Abu Dhabi, the findings highlight the appeal of diversifying portfolios across the UAE’s premium property market. The structural demand-supply gap, record sales, and rising rental yields suggest strong long-term capital appreciation and steady cash flow opportunities. With luxury and master-planned communities at the center of growth, investors may find Abu Dhabi a complementary play alongside Dubai’s established real estate ecosystem.
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