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Abu Dhabi real estate: Luxury property sales hit $1.7bn in first four months of 2025

The rise of branded residences in Abu Dhabi has been one of the strongest growth engines in 2025

Mandarin Oriental Residences in Saadiyat Cultural District Abu Dhabi
Mandarin Oriental Residences in Saadiyat Cultural District Abu Dhabi

Abu Dhabi’s luxury property market has recorded AED 6.3 billion in sales during the first four months of 2025, with branded residence launches increasing fourfold compared to the previous year.

The market has seen a 5 per cent increase in luxury transactions valued at AED 7 million and above, driven by demand from high-net-worth individuals, international investors and long-term residents, according to Metropolitan Capital Real Estate (MCRE).

More than half of these transactions were in the AED 10 million and above segment, reflecting confidence in Abu Dhabi’s premium real estate sector.

Abu Dhabi luxury market soars

Evgeny Ratskevich, CEO of Metropolitan Capital Real Estate, said: “Abu Dhabi has firmly positioned itself as a premier destination for luxury and lifestyle-led investments. We have witnessed investors initially seeking to purchase a single property, ultimately expanding their portfolios due to a strong belief in the market’s potential. We are also seeing an increase in the number of long-term residents who are opting to purchase properties in Abu Dhabi instead of renting, reflecting the growing confidence in the city’s real estate market.”

The rise of branded residences has been one of the strongest growth engines in 2025, with developers launching new lifestyle-centric communities across Saadiyat Island, Al Reem and Mariah Island.

At least 25 branded residences are expected to be announced in 2025, up from just a handful in 2024.

Branded projects include Jacob & Co Beachfront Residences, Brabus Residences by Cosmo, Waldorf Astoria Residences, Elie Saab Waterfront, SHA Wellness Residences, Mandarin Oriental Residences and Nobu Residences.

Nobu Residences achieved a record-breaking penthouse sale of AED 137 million, the highest residential transaction in Abu Dhabi to date.

The secondary luxury market has also performed well in 2025, with a 158 per cent increase in transaction volume year-on-year.

The secondary luxury market saw nearly AED 3 billion in resale activity until April of this year, with super-luxury properties (AED 10mn+) accounting for over AED 2.6 billion, or 60 per cent of the total secondary market volume.

In just four months, secondary super-luxury transactions have already reached 22 per cent of 2024’s full-year total.

MCRE has registered an 11.5 per cent share of the market for properties priced at AED 7 million and above.

The company facilitated over AED 700 million in transactions in this category, including AED 530 million in the ultra-luxury segment (AED 10mn+) alone, capturing 11 per cent of that market.

Property prices in branded projects now average AED 2,500 to AED 4,000 per sq. m., depending on location, which is lower than comparable properties in Dubai and Ras Al Khaimah, according to Ratskevich.

The Abu Dhabi market witnessed a shift in investor demographics in 2024, according to MCRE.

While Russian and CIS investors remained prominent at the beginning of the year, their interest waned in Q2, paving the way for a surge in demand from UK, US, UAE nationals and citizens from other GCC countries.

Almost half of the buyers are end users with investors looking to diversify their portfolio.

Key locations shaping Abu Dhabi’s high-end market include Saadiyat Island, Al Hidayriyyat, which has already surpassed 20 per cent of its full-year sales from last year, Yas Island and Reem Island.

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