Abu Dhabi’s real estate market recorded continued growth in the first half of 2025, supported by transaction activity in both the sales and rental sectors.
The findings were published in dubizzle’s H1 2025 Abu Dhabi Property Sales and Rental Market report, which outlined trends across ready and off-plan markets, investor activity, and short-term and long-term rentals.
According to the report, transaction values increased in the first six months of the year, reflecting sustained demand across major communities.
Ready and off-plan sales drive Abu Dhabi real estate market in H1 2025
Growth was attributed to the impact of digital platforms, such as Madhmoun, which enhanced transparency, streamlined transactions and increased property visibility.
Infrastructure projects including Etihad Rail and the upcoming Disneyland on Yas Island were also cited as contributing factors to increased property values and rental demand in nearby areas.
Haider Khan, CEO of dubizzle and Dubizzle Group MENA, said: “Abu Dhabi’s real estate landscape is evolving rapidly, driven by ambitious infrastructure projects and a clear commitment to transparency. With initiatives like Madhmoun and landmark developments such as Disneyland on Yas Island being announced, the emirate is becoming an even more attractive destination for investors and residents alike.
“At dubizzle, we’re proud to support this momentum by offering a wide range of ‘Verified’ listings and a dedicated off-plan experience. Through our alignment with ADREC and our upcoming AI-powered innovations, we remain committed to building a smarter, more transparent property market that reflects the bold vision of Abu Dhabi’s future.”
Ready sales data showed increases across budget segments. Affordable apartment prices rose by 6.44 per cent, while villa prices increased by 3.38 per cent.
Mid-tier apartments rose by 4.91 per cent, and mid-tier villas appreciated by 4.84 per cent. Luxury apartment prices increased by 8.95 per cent, with luxury villas rising by 4.92 per cent.
Al Reef, Al Reem and Yas Island lead Abu Dhabi property returns in H1 2025
Al Reef recorded the highest price increase among affordable villa communities, with a return on investment (ROI) of 6.18 per cent.
Other communities that performed well in this segment included Al Shamkha, Khalifa City, Zayed City and Hydra Village.
Mid-tier villa buyers showed interest in Al Raha Gardens, Al Reem Island and Al Samha. Luxury villa buyers focused on waterfront locations, including Yas Island, Saadiyat Island, Al Jubail Island and Al Matar.
The off-plan market showed momentum in H1 2025 with a rise in project launches and buyer interest across price categories.
In the affordable off-plan apartment segment, Al Shamkha and Zayed City remained key areas.
Al Reeman 1 in Al Shamkha was popular, with apartments averaging AED 804,000. Granada at Bloom Living averaged AED 1.34 million, while Nawayef Park Views on Al Hudayriyat Island reached AED 3.56 million.
Affordable villa prices ranged from AED 1.01 million to AED 4.7 million, led by projects such as Al Reeman 2 in Al Shamkha and Al Naseem on Al Hudayriyat Island.
For mid-tier off-plan apartments, Al Reem Island remained active, supported by Vista 3 (AED 1.39 million), Reem Hills (AED 1.66 million) and Renad Tower (AED 1.58 million). Other active communities included Masdar City, Ghantoot and Shakhbout City.
Mid-tier villa demand was led by Reem Hills on Al Reem Island and Royal Park in Masdar City.
Luxury off-plan activity centred on waterfront areas including Yas Island, Saadiyat Island, Al Maryah Island, Al Raha Beach and Al Jurf.
Luxury apartment buyers favoured Yas Bay by Miraal (AED 2.11 million), Gardenia Bay by Aldar (AED 1.96 million), the Saadiyat Cultural District (AED 4.66 million), and Brabus Island in Al Raha Beach (AED 3.13 million). On Al Maryah Island, the St. Regis Residences and W Residences gained interest.
Luxury villa demand was led by Yas Riva on Yas Island, with additional activity in Saadiyat Island, Al Jubail Island and Al Jurf.
In the affordable segment, Al Reef led ROI for apartments at 9.46 per cent, followed by Al Ghadeer at 8.42 per cent. Hydra Village and Al Reef led for affordable villas with 8.42 per cent and 6.18 per cent ROI, respectively.
Mid-tier apartment ROIs reached 7.33 per cent in Al Reem Island and 7.20 per cent in Masdar City. Villas in Al Raha Gardens and Al Samha recorded ROIs of 6.23 per cent and 5.34 per cent, respectively.
Among luxury apartments, Al Maryah Island recorded the highest ROI at 8.48 per cent, followed by Yas Island (6.77 per cent) and Al Raha Beach (6.40 per cent).
Saadiyat Island and Yas Island led the villa segment with ROIs of 5.56 per cent and 5.40 per cent, respectively.
Abu Dhabi sees strong investor interest in affordable and luxury property segments
In the luxury apartment segment, Al Raha Beach, Corniche Area and Yas Island recorded average annual rents between AED 112,000 and AED 143,000.
Villas in Yas Island, Al Bateen and Saadiyat Island had average rents between AED 236,000 and AED 590,000.
Apartment rents increased in popular mid-tier locations. Electra Street averaged AED 66,000 (+12.33 per cent), Al Reem Island AED 114,000 (+9.24 per cent), and Al Khalidiyah AED 91,000 (+9.22 per cent).
Mid-tier villas in Shakhbout City, Al Samha and Al Raha Gardens averaged AED168,000, AED 144,000 and AED 184,000, respectively.
In the affordable segment, apartments in Khalifa City, Al Shamkha and Al Nahyan ranged from AED 45,000 to AED 62,000.
Villas in Khalifa City, Al Reef and Al Shamkha had rents between AED 135,000 and AED 199,000.
Al Reem Island and Masdar City were preferred mid-tier short-term rental areas, with average monthly rents of AED 11,410 and AED 8,350, respectively.
Luxury short-term rental demand remained focused on Yas Island, Al Raha Beach and Saadiyat Island.
Yas Island rents increased slightly to AED 12,560. Al Raha Beach recorded 21.93 per cent growth, reaching AED 13,050. Saadiyat Island remained the highest, with an average rent of AED 16,740.
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