The first half of 2025 has reinforced Abu Dhabi’s position as a resilient and attractive real estate market, according to property portal Bayut.
In its latest market report, Bayut revealed that steady price growth, strong rental yields, and sustained investor demand have marked H1 2025 as a period of notable performance for the capital’s property sector.
With growing interest from both local and international investors, the Abu Dhabi property market continues to benefit from extensive infrastructure development and government-backed, investor-friendly initiatives, strengthening its reputation as a regional investment hotspot.
Property sales trends: Growth across all segments
Bayut’s data highlights a robust property sales landscape across all budget segments:
- Affordable areas: Budget-focused buyers have gravitated towards Al Reef, Al Ghadeer, Khalifa City, and Al Shamkha.
- Mid-tier investments: Areas like Al Reem Island, Masdar City, Al Raha Gardens, and Al Samha have attracted mid-range investors.
- Luxury hotspots: Yas Island and Saadiyat Island continue to be preferred by high-profile investors, with demand further bolstered by the announcement of Disneyland Abu Dhabi.
Sales price highlights
Apartment prices in affordable areas rose by up to 7 percent, while budget villa prices increased by up to 5 percent.
Mid-tier apartments appreciated between 6 percent and 11 percent, while mid-tier villas saw mixed performance:
- Al Raha Gardens – up 2.68 percent
- Al Samha – surged 26.7 percent
- Baniyas – declined 1.45 percent
Luxury apartments in Yas Island and Saadiyat Island saw up to 17 percent price hikes.
Luxury villa prices rose by 5 percent to 10 percent, except on Al Jubail Island, where prices dropped 17.8 percent as investor interest shifted toward more popular islands.
Rental yields: Solid returns for investors
Rental returns remained a key attraction in H1 2025:
- Affordable apartments offered high yields:
- Al Reef: 9.33 percent
- Al Ghadeer: 8.45 percent
Mid-tier apartments delivered:
- Masdar City: 8.41 percent
- Al Reem Island: 7.59 percent
Luxury apartment yields:
- Yas Island: 7.15 percent
- Al Raha Beach: 6.58 percent
Villa rental yields:
- Al Reef (affordable): 6.34 percent
- Al Raha Gardens (mid-tier): 6.17 percent
- Yas Island (luxury): 5.46 percent
Off-plan project preferences: Diverse demand across budget segments
Investor appetite for off-plan developments remained strong, especially across emerging communities:
Affordable off-plan apartments:
- Al Reeman 1 (Al Shamkha) and Bloom Living (Zayed City) drew the most attention.
Mid-tier off-plan apartments:
- Interest centered around Yas Bay.
Luxury off-plan apartments:
- Nawayef Park Views (Hudayriat Island) topped investor interest.
For villas:
Affordable segment:
- Bloom Living, Al Reeman 2, and Reportage Village in Khalifa City led interest.
Mid-tier segment:
- Yas Acres and Al Jurf Gardens proved popular.
Luxury segment:
- Nawayef West (Hudayriat Island) and Saadiyat Lagoons were the top choices.
Rental market trends: Demand surging across all tiers
Abu Dhabi’s rental market saw notable activity, driven by population growth and increasing demand for quality housing:
Affordable rentals:
- Khalifa City, Al Shamkha, and Shakhbout City remained sought-after.
Mid-tier rentals:
- Tenants favored Al Reem Island and Al Khalidiyah (apartments), and Al Raha Gardens and Al Muroor (villas).
Luxury rentals:
- Yas Island and Saadiyat Island maintained their status as prime locations.
Rental price movements
- Affordable apartment rents rose between 2 percent and 21 percent, with 2-bedroom units in Al Nahyan showing the highest increase.
- Mid-tier apartment rents surged by 3 percent to 68 percent, with studio units in Tourist Club Area showing the largest jump due to tight supply.
- Luxury apartment rents increased by 3 percent to 14 percent, although 2 and 3-bedroom units in Saadiyat Island saw slight dips of 0.47 percent and 2 percent.
- Villa rents rose by up to 13 percent in affordable areas and up to 7 percent in mid-tier districts.
- Luxury villa rentals displayed mixed results, with up to 7 percent increases for 4-bed homes in Saadiyat Island and Al Bateen, but a 6 percent decline for 5-bed homes in both Saadiyat Island and Yas Island.
Commenting on the findings, Haider Ali Khan, CEO of Bayut, and Dubizzle Group MENA, said: “Abu Dhabi’s real estate market has been on a steady upward path this year, and the interest we’re seeing speaks for itself with over 9.3 million visits recorded on Bayut’s Abu Dhabi listings in just six months.
“With strong demand and smart initiatives such as ADREC’s Madhmoun boosting transparency, the capital is shaping up to be a really exciting space for both homebuyers and investors. All signs point to Abu Dhabi emerging as one of the most exciting and future-ready real estate destinations in the region.”
Outlook: A market in motion
Bayut’s H1 2025 report underscores Abu Dhabi’s sustained growth, strategic development, and diverse property offerings, all of which continue to attract buyers, tenants, and investors. With rising demand, evolving infrastructure, and ambitious mega-projects such as Disneyland Abu Dhabi, the UAER capital’s property market remains one to watch for the remainder of 2025 and beyond.
