Following the success of the Abu Dhabi real estate sector’s AED96.2bn ($26.2bn) transaction value last year, the emirate continues to see growth in Q1 2025, according to Bayut market analysis.
Increased foreign direct investment inflows and new development launches are further fuelling the sector.
The study highlights the capital’s real estate performance, with growing transaction numbers pointing to healthy investor confidence.
Abu Dhabi real estate Q1 2025
This upward momentum can be attributed to capital appreciation, strategic inventory management and Abu Dhabi’s rising prominence as a high-yield investment destination within the global real estate landscape.
The Abu Dhabi property ecosystem continues to offer diverse investment entry points across multiple price segments, making it an inclusive market for all types of investors.
Budget-conscious buyers searching for properties gravitated toward established communities such as Al Reef, Al Ghadeer, Khalifa City and Al Shamkha, which offer compelling value propositions.
The mid-market segment saw concentrated search activity in Al Reem Island, Masdar City, Baniyas, Al Samha and Al Raha Gardens – areas that balance accessibility with premium amenities.
In the ultra-luxury segment, Abu Dhabi’s signature waterfront enclaves – Yas Island, Saadiyat Island and Al Raha Beach –maintained their status as preferred destinations for high-net-worth investors seeking rewarding assets.
The asking prices for apartments and villas in the affordable sector have recorded minor increases of up to 2 per cent.
The mid-market segment, which saw healthy search activity in Al Reem Island, Masdar City, Baniyas, Al Samha and Al Raha Gardens, demonstrated a robust performance, reassuring investors about market stability.
Apartments in the mid-range sector witnessed price increases of up to 4 per cent, while villa prices saw more moderate appreciations. Worthy of particular note was Al Samha reporting a price increase of 7.2 per cent.
The luxury property segment has maintained its strong market position, with price increases ranging from 2 per cent to 7 per cent for apartments and up to 4 per cent for villas.
According to Bayut’s Abu Dhabi Q1 2025 Market Report data, Yas Island recorded the most significant asking price appreciation in the apartment sector at 6.57 per cent, demonstrating the market’s stability and growth potential.
For yield-focused investors, Abu Dhabi continued to deliver compelling returns across all market segments in Q1 2025.
In the affordable apartment category, Al Reef and Al Ghadeer have generated exceptional rental yields of 8.38 per cent and 9.95 per cent, respectively.
Mid-market apartment communities, including Al Reem Island, Baniyas and Masdar City, have delivered solid yields ranging from 5.57 per cent to 7.6 per cent.
Premium apartments in Al Raha Beach, Yas Island and Saadiyat Island have produced rental returns of between 3.88 per cent and 7.37 per cent.
In the villa segment, Al Reef leads the affordable category with a robust ROI of 6.45 per cent. Mid-tier villa communities such as Al Raha Gardens and Al Samha have generated returns between 5 per cent and 7 per cent.
Premium villa destinations, including Yas Island, Saadiyat Island and Al Raha Beach, have maintained strong investor appeal with yields exceeding 4.55 per cent.
Off-plan real estate in Abu Dhabi
The off-plan market witnessed strategic activity, with Al Reeman 1 and Bloom Living emerging as the preferred investment choices in the affordable apartment category.
Yas Beach Residences and Saadiyat Cultural District developments attracted significant interest from prospective buyers in the luxury off-plan apartment sector.
Reem Hills, Bloom Living and Al Reeman 2 dominated the affordable segment for villa searches in the off-plan market.
Search trends in terms of premium off-plan villa investments in Q1 2025 were concentrated in the master-planned communities of Saadiyat Lagoons and Yas Acres, which continue to attract substantial investment capital.
The first quarter of 2025 saw market strength continue to build on Abu Dhabi’s exceptional performance in 2024, which saw 28,249 transactions—a 24.2 per cent year-on-year increase—with a combined transaction value of AED96.2bn ($26.2bn).
The sector attracted AED7.86bn ($2.1bn) in foreign direct investment, with capital inflows from more than 2,300 international investors spanning 105 countries.
The launch of 38 new off-plan developments and the delivery of 12 landmark projects have further expanded Abu Dhabi’s real estate portfolio, offering increasingly diverse, architecturally distinguished and strategically positioned investment opportunities across multiple price points.
Haider Ali Khan, CEO of Bayut, Head of Dubizzle Group MENA and Board Member of the Dubai Chamber of Digital Economy, said: “Abu Dhabi’s real estate sector in 2025 continues to build on last year’s strong momentum, remaining an attractive destination for global investors.
“The influx of capital from sovereign wealth funds and the growing entrepreneurial landscape are driving renewed interest in the emirate.
“With over 30 new projects launched, AED7.8bn in foreign investment recorded in 2024, and an increased focus on transactions, Abu Dhabi is establishing itself as a smart, future-ready hub for property investment”.
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