Staff Report
Dubai, UAE
Abu Dhabi recorded Dh54 billion worth of real estate transactions in the first half of this year, Abu Dhabi Real Estate Centre (ADREC) revealed in its first ‘Real Estate Market Report’. The value jumped 42 percent year-on-year (YoY) from H1 2024, clearly bolstered by sales transactions in the residential sector. Residential sales alone contributed Dh25 billion, representing a 38 percent YoY growth, and sales volumes rose by nearly 25 percent. Cash transactions continue to be the dominant mode of payment, amounting to 81 percent of total sales.
The inaugural report, a first in a regular series of publications, provides an extensive overview of Abu Dhabi’s real estate market, including trends in transactions, residential sales and leasing performance, supply and demand dynamics, price movements across apartments, villas, townhouses, and the outlook for future supply. It also highlights the contribution of key investment zones, the role of top performing districts and projects, the growing share of the luxury segment, and the dominance of cash transactions.
Around 400,000 units made up the residential inventory in H1 2025, with an average supply growth of 2.6 percent per year since 2022. Demand continues to exceed supply – a trend that has been consistent since 2019 – growing by 6 percent from 2022. This has led to strong price growth with prices of apartment sales increasing by 14 percent YoY in the second quarter of 2025, while villa/townhouse prices rose by 11 percent, ADREC’s report stated.
According to the report, future residential supply within the Abu Dhabi region will increase by 4.6 percent by 2028, adding between 45,000 to 55,000 units, opening opportunities for additional investment.
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 have significantly influenced the market’s performance, with the top 10 developments contributing approximately half of total residential unit sales value in H1 2025. Al Hudayriat Island topped the list with Dh2.4 billion in sales, followed by landmark luxury and mixed-use developments like Bal Ghaiylam, Mamsha Gardens, and Saadiyat Lagoons. The premium apartment segment increased rapidly, representing 57 percent of apartment sales value in H1 2025 and more than double its share in 2023 with Al Saadiyat Island emerging as the attraction point for ultra-premium launches.
The rental market has also mirrored this upward trend, with total lease values reaching Dh8.2 billion in H1 2025, up 6 percent from the same period last year. Apartment rents increased by 21 percent and villa/townhouse rents by 7 percent in the last two years, showcasing continued demand in both high-end and family-oriented communities.
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. This has helped to build a sizeable development pipeline, with more than 57,000 units expected to be handed over by the end of 2029 alone.”
Judging by the current market conditions, supply shortage is anticipated to continue for a while. As projects approach completion and new inventory is added, the gap between demand and supply will gradually bridge. As a result, prices will soften, offering better price points to buyers and easing rental strain upon tenants.
“Completion of these properties will obviously go some way to addressing the current supply and demand imbalance and in helping to lower housing costs in the longer term. This is also being supported by the government’s continued initiatives around National Housing, with Dh106 billion investments committed, with projects to be delivered in partnership with major developers such as Aldar, Modon, Bloom Holding and Wahat Al Zaweya, and Imkan Properties,” Matthew added.
The analytics of ADREC’s real estate report has been produced by proprietary advanced AI tools to which were leveraged to cleanse and enrich national datasets across data platforms unlocking scalable, high-quality analysis and insights for Abu Dhabi’s real estate market.
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Also read: Abu Dhabi announces Dh42 billion plan to upgrade residential areas
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