The Abu Dhabi Real Estate Center reported today that the total transaction value grew by 34.5 percent to AED25.3 billion ($6.89 billion) across 6,896 deals in the first quarter of 2025, marking a significant increase from AED18.82 billion from 5,773 transactions during the same quarter of 2024.
Buy and sell transactions totalled AED15.51 billion through 3,819 transactions, reflecting a 26.7 percent increase in value and an 11 percent rise in volume compared to the first quarter of 2024. Meanwhile, mortgage transactions reached AED9.8 billion through 3,077 transactions, a 49 per cent year-on-year increase.
Saadiyat Island was the leading area for real estate transactions in Abu Dhabi, recording deals worth AED5.6 billion. It was followed by Yas Island, with AED3.6 billion, and Mohammed Bin Zayed City with AED2.1 billion. Al Reem Island and Al Hudayriyat Island also recorded over AED1 billion in transactions.
Real estate market attracts AED1.582 billion in FDI
The report also highlighted continued activity in Foreign Direct Investment (FDI), with 384 transactions valued at AED1.582 billion concluded by investors from 68 nationalities, up from 58 nationalities during the same period last year. This demonstrates growing confidence in Abu Dhabi’s real estate market, driven by regulatory policies and government initiatives that enhance its local and global appeal.
“These results highlight the strength of Abu Dhabi’s property market and its enduring attractiveness as a regional and international hub for real estate investment. The notable growth in transaction value and volume, alongside the rise in foreign investment, underscores the effectiveness of our regulatory frameworks and reinforces investor confidence in the market,” stated Engineer Rashed Al Omaira, acting director-general of ADREC.
Growth momentum persists
Abu Dhabi’s real estate sector momentum has carried into 2025, with Q1 2025 reinforcing the city’s upward trajectory. In 2024, the emirate recorded 28,249 real estate transactions — marking a 24.2 percent year-on-year increase — with a total transaction value of AED96.2 billion.
The sector also attracted AED7.86 billion in foreign direct investment from over 2,300 international investors spanning 105 countries. The launch of 38 new off-plan projects and the completion of 12 landmark developments have significantly broadened Abu Dhabi’s real estate portfolio, offering more diverse, architecturally distinct and strategically located investment options across a wide range of price points.
“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,” stated Haider Ali Khan, CEO of Bayut, head of Dubizzle Group MENA and board member of the Dubai Chamber of Digital Economy.
“With over 30 new projects launched, AED7.8 billion 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,” he added.
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Solid returns on investment drive FDI growth
According to the latest Q1 2025 report by Bayut, Abu Dhabi continued to offer solid returns on investment (ROI) across the board. In the affordable apartment segment, Al Reef and Al Ghadeer offered yields of 8.38 percent and 9.95 percent, respectively.
Mid-market communities like Al Reem Island, Baniyas, and Masdar City delivered returns ranging from 5.57 percent to 7.60 percent. Premium apartments in Al Raha Beach, Yas Island, and Saadiyat Island generated yields between 3.88 percent and 7.37 percent, according to the report.
For villas, Al Reef led in the affordable category with a 6.45 percent ROI. Mid-tier communities such as Al Raha Gardens and Al Samha saw yields between 5 percent and 7 percent, while luxury villa locations, including Yas Island, Saadiyat Island, and Al Raha Beach, maintained yields above 4.55 percent.
