Dubai: According to Savills’ most recent report from Residential Market in Minutes shows, the residential real estate market in Abu Dhabi is remaining stable in 2025 despite fewer new developments entering the market.
The slow development of new ready to move in homes has resulted in less demand, resulting in increased sales prices and attracting ideal buyers and investors.
The property market still persists even as the transaction volumes have fallen 39% in Q1 as compared to last year in the same period.
Buyers are actively looking for the limited availability in the market as there were just 10 new projects introduced and less than 3,000 new houses delivered this quarter. The growing sales prices reflect this as there was a significant increase of 13.4% year over year—from AED 14,100 to AED 16,200 per square meter.
Long-term investment magnet
Abu Dhabi’s reputation as a desirable location to live and invest has been strengthened due to number of factors. For the ninth consecutive year, the city has been awarded the safest in the world.
Furthermore, both locals and institutional investors are attracted to the location by deliberate investments in lifestyle, education and cultural infrastructure, such as the construction of the Saadiyat Cultural District and the soon to be released Harrow International School.
“There is a noticeable demand, especially in master-planned and connected communities,” stated Ali Ishaq, Head of Residential Agency at Savills Middle East. As seen by both transaction share and increasing capital values, the lack of fresh releases has redirected activity towards the ready market.
Prioritise high-end ready units
Notably, ready-to-move-in purchases accounted for 68% of all residential sales in Q1 2025, compared to 44% in the previous year. Prices in villa communities increased gradually, rising by 7% in Al Reef, 10% on Yas Island and 26% on Saadiyat Island. This indicates that there is a high demand for luxury, lifestyle-oriented neighbourhoods.
A Noticeable Interest from Expats
Inspite of the numbers, foreign families are nevertheless drawn to the city, thanks to long-term visa reforms, growth in the private school industry and improvements to lifestyle such as the planned Disney theme park on Yas Island. It is also anticipated that the arrival of foreign developers in Abu Dhabi will increase future demand and increase investor involvement.
In the upcoming quarters, Savills anticipates that the ready-to-move-in market will continue to be active, particularly in established areas. Abu Dhabi’s relatively limited supply and high demand characteristics may be particularly alluring to investors and homeowners considering the UAE real estate market, providing significant medium-term capital growth potential.
Henry Wiltshire International is a multi-award winning brokerage with more than 11 years of experience in Abu Dhabi. We specialise in luxury and off-market properties as well as a full range throughout the city and islands. If you’re looking to buy, sell or lease, contact us at +971 56 484 3380
