Abu Dhabi’s real estate market has had a strong start to 2025, with robust transaction activity underscoring rising investor confidence, according to the latest Q1 2025 report by Bayut.
The report highlights a healthy uptick in property transactions across the UAE capital, driven by investment appreciation, strategic inventory planning, and Abu Dhabi’s growing appeal as a high-yield global investment hub.
Read: Dubai real estate boom: Q1 2025 records 45,474 transactions worth AED 142.7 billion
Abu Dhabi real estate market outlook: Building in 2024’s record-breaking momentum
The records from 2024 have carried into the year, with Q1 2025 reinforcing Abu Dhabi’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 AED 96.2 billion.
The sector also attracted AED 7.86 billion in foreign direct investment from over 2,300 international investors spanning 105 countries. The launch of 38 new off-plan projects and 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.
Diverse investment opportunities across Abu Dhabi property market segments
Abu Dhabi continues to present inclusive entry points for investors across all budget ranges. Budget-conscious buyers favored communities such as Al Reef, Al Ghadeer, Khalifa City, and Al Shamkha for their value propositions.
The mid-market segment saw heightened interest in Al Reem Island, Masdar City, Baniyas, Al Samha, and Al Raha Gardens, which offer a balance of accessibility and modern amenities.
In the ultra-luxury category, waterfront destinations such as Yas Island, Saadiyat Island, and Al Raha Beach remained top choices for high-net-worth investors.
Price trends reflected this confidence. Affordable apartment and villa prices rose modestly by up to 2 percent. Mid-market apartment prices saw increases of up to 4 percent, with Al Samha standing out with a 7.20 percent rise.
Luxury apartment prices increased between 2 percent and 7 percent, led by Yas Island with a 6.57 percent jump, while villa prices in the same segment appreciated by up to 4 percent.
Strong returns across segments
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.
Investing in Abu Dhabi real estate in 2025
Strategic investment in the off-plan segment continued in Q1 2025. In the affordable apartment sector, Al Reeman 1 and Bloom Living emerged as key choices. Yas Beach Residences and developments in the Saadiyat Cultural District attracted strong interest in the luxury segment.
Off-plan villa searches were led by Reem Hills, Bloom Living, and Al Reeman 2 in the affordable segment, while Saadiyat Lagoons and Yas Acres stood out as top destinations for premium off-plan villa investments.
Rental market sees upward trend
Bayut’s rental analysis shows a general upward trajectory, with some areas experiencing significant price changes. Budget-conscious renters looked to Khalifa City, Al Rahbah, and Al Shamkha for apartments, and to Khalifa City, Al Rahbah, and Shakhbout City for villas.
Mid-market apartment rentals saw high demand in Al Reem Island, Al Khalidyah, and Al Muroor, while Mohammed Bin Zayed City, Al Muroor, and Al Mushrif were top villa rental destinations.
Premium rentals in Al Raha Beach, Yas Island, and Saadiyat Island remained in high demand, especially for luxury apartments and villas in Yas Island, Saadiyat Island, and Al Bateen.
Apartment rents in the affordable category rose by up to 14.2 percent, with 1-bed units in Al Shamkha seeing the highest increase. Mid-market apartments saw rent hikes of up to 20 percent, particularly for 2-bed units in Al Muroor. In the luxury segment, apartment rents in Al Raha Beach and Yas Island rose by up to 7 percent, while Saadiyat Island saw declines of up to 4.34 percent.
Affordable villa rents increased by up to 4 percent, while mid-market villa rentals saw up to 8 percent growth in Mohammed Bin Zayed City and Al Mushrif.
Luxury villa rents rose by as much as 14.2 percent in Al Bateen and 7.06 percent in Saadiyat Island, although declines of up to 9 percent were recorded in some units on Yas Island and larger villas on Saadiyat Island.
Commenting on the findings, 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, AED 7.8 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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