Abu Dhabi, UAE – Real estate transactions in Abu Dhabi surged to AED 54 billion in the first half of 2025, according to the inaugural Abu Dhabi Real Estate Centre (ADREC) Real Estate Market Report. The value represents a 42 percent year-on-year increase, underscoring the capital’s strong performance across sales and leasing segments.
Residential Sales Lead Growth
Residential sales contributed AED 25 billion, a 38 percent increase from H1 2024, while transaction volumes rose by nearly 25 percent. Cash deals dominated activity, making up 81 percent of total transactions.
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.”
Al Omaira added that the government is ensuring regulations evolve in line with market momentum, simplifying buying, selling, and renting in Abu Dhabi to keep the emirate competitive on both a regional and global level.
Supply and Demand Dynamics
Residential inventory reached around 400,000 units in H1 2025, growing at an average of 2.6 percent annually since 2022. However, demand continues to outpace supply, rising 6 percent since 2022, which has driven strong price increases. Apartment sale prices rose 14 percent year-on-year in Q2 2025, while villa and townhouse prices climbed 11 percent.
Looking ahead, ADREC projects residential supply to expand by 4.6 percent by 2028, adding between 45,000 and 55,000 units. This additional stock is expected to narrow the demand-supply gap, eventually stabilizing prices and easing rental pressure.
Masterplans and District Performance
Master-planned developments significantly influenced market momentum, with the top 10 projects accounting for half of all residential sales value in H1 2025. Al Hudayriat Island led with AED 2.4 billion in transactions, followed by luxury and mixed-use developments such as Bal Ghaiylam, Mamsha Gardens, and Saadiyat Lagoons.
The premium apartment market also expanded sharply, accounting for 57 percent of total apartment sales value in H1 2025—more than double its share in 2023. Saadiyat Island emerged as the centrepiece for ultra-premium launches.
Rental Market Expansion
Leasing values reached AED 8.2 billion in H1 2025, up 6 percent year-on-year. Apartment rents rose 21 percent over the past two years, while villa and townhouse rents increased 7 percent.
Matthew Green, Head of Research at CBRE MENA, said, “In the short term, the market dynamic reflects an underlying shortage of quality housing, with rents rising by 26 percent over the last 12 months alone. In response, we have seen a significant number of new residential launches, particularly across masterplans such as Saadiyat Island, Al Maryah Island, and other newly launched communities such as Al Fahid Island.”
Green added that a pipeline of more than 57,000 units is expected to be handed over by the end of 2029, which will gradually reduce the supply-demand imbalance. Government initiatives, including AED 106 billion in National Housing investments with leading developers such as Aldar, Modon, Bloom Holding, Wahat Al Zaweya, and Imkan Properties, will further support housing affordability.
Market Outlook for Investors
With prices and rents continuing to rise, Abu Dhabi real estate transactions demonstrate the emirate’s resilience and long-term potential. For Indian investors, the market provides an opportunity to diversify beyond Dubai into an environment of strong rental yields, growing demand, and high transparency backed by government initiatives. Master-planned communities such as Saadiyat Island and Al Hudayriat offer investment appeal not only for luxury buyers but also for those targeting consistent income streams in one of the Gulf’s most stable economies.
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