Staff Report
Dubai, UAE
Abu Dhabi’s real estate sector announced 39 percent year-on-year spike in half-yearly transactions, achieving Dh51.72 billion in H1 2025 as compared to Dh37.2 billion in H1 2024. According to Abu Dhabi Real Estate Centre (ADREC), transaction volume rose 12 percent yearly to 14,167 deals, reflecting accelerated market activity underpinned by notable increases in sales, purchases, and mortgage transactions.
Sales and purchases transactions grew 32 percent in value, reaching Dh32.69 billion through 7,964 transactions, while mortgage transactions recorded a significant 52 per cent increase in value, amounting to Dh19.03 billion through 6,204 deals.
Rashed Al Omaira, Acting Director General of ADREC, said, “The first-half performance reflects the growing confidence in Abu Dhabi’s real estate market, from both global and national investors, reflected in the sustained growth in transaction values and continued increase in foreign investment.
“The recent launch of high-quality projects has further energised the market and opened doors to attractive investment opportunities, reinforcing Abu Dhabi’s attractiveness as a leading destination for sustainable real estate investment. Additionally, the initiatives ADREC recently launched and the facilitations it offered, including automation of a large number of processes and services, had a pivotal role in reaching this achievement, through streamlining the investor’s journey, accelerating transactions and enhancing transparency.”
The market’s growth results from Abu Dhabi’s adoption of policies that foster an investor-friendly environment while enhancing the residential sector with facilities that drive in more homeowners and global settlers.
“The Abu Dhabi real estate market is experiencing robust growth driven by a confluence of factors. A highly business-friendly environment, characterised by progressive government policies, low taxation, and initiatives attracting foreign investment, continues to bolster economic diversification and, in turn, real estate demand,” Cathal Kenny, Director – Valuation & Advisory Services at CBRE, stated.
In addition, the capital’s vision to transform into an international recreation haven is also garnering investor interest. The likes of the highly-anticipated Disney theme park and Louvre Abu Dhabi promise boon to the emirate’s real estate and hospitality sectors in particular.
“The emirate is also set to become a major cultural and entertainment hub with the upcoming openings of iconic attractions like the Guggenheim Abu Dhabi (expected 2026), the Natural History Museum Abu Dhabi (expected 2025), and the Zayed National Museum (expected December 2025). Furthermore, the recent announcement of Disneyland Abu Dhabi on Yas Island (May 2025) is anticipated to be a significant future demand driver, attracting families and investors seeking long-term growth. This strong demand is complemented by a steady supply outlook ensuring investors are confident of a balanced market in the coming years where capital and rental growth are likely,” Kenny added.
ADREC’s report also noted an increase in international interest during the first half of the year. Foreign Direct Investment (FDI) transactions reached 890, a 3.3 percent increase in total value, amounting to Dh3.38 billion. The number of nationalities who invested grew to 85, up 10 percent compared to the same period last year, underscoring the growing global confidence in Abu Dhabi’s real estate sector.
Faisal Durrani, Partner – Head of Research, Knight Frank MENA, said, “Abu Dhabi’s popularity amongst international investors is continuing to rise, as evidenced by the fact that 28% of Aldar’s sales in 2023 went to international non-resident buyers, compared to 3% in 2022. Domestic buyers still form the backbone of demand, however. The city’s popularity is also rising amongst international HNWI, with 19% of global HNWI keen on a residential acquisition in the capital this year, up from 14% in 2024.”
Strong investor interest was received from major and emerging economies including Russia, China, the United Kingdom, France, Kazakhstan and the United States, ADREC said.
In terms of transaction values by area, Saadiyat Island maintained its lead at more than Dh9.1 billion, followed by Yas Island at Dh5.86 billion, and Al Bahia at Dh3.98 billion. Other locations that recorded strong transactions included Mohammed Bin Zayed City, Al Reem Island, Al Riyadh City, and Khalifa City, highlighting the broad geographic spread of real estate activity across the emirate.
Ends
Also read: Abu Dhabi records 24.2% jump in property transactions to Dh96.2 bn in 2024
