Abu Dhabi’s Real Estate Market Sees Major Growth in First Half of 2025
Abu Dhabi’s property sector experienced a remarkable rise in the first six months of 2025, with transaction values rising up by 42%, as compared to the same period in 2024. This rise is due to the strong investor confidence, a growing population and the emirate’s expanding economy. Abu Dhabi Real Estate Centre (ADREC) has mentioned that the total value of property transactions reached AED 54 billion (around $14.7 billio) and residential sales have contributed AED 25 billion—a 38% increase year-on-year to the total transacations.
The volume of property deals has shown a significant growth of 25%, as 15,578 transactions were recorded. Rashed Al Omaira, ADREC’s acting director general, emphasised that Abu Dhabi’s property market is setting new benchmarks in both transaction volume and value. He attributed this growth to a combination of economic expansion, trust from international investors, the development of well-planned and high-quality communities.
Economic and Demographic Drivers
The emirate’s economic performance has played a pivotal role in boosting the real estate sector. Abu Dhabi’s economy grew by 3.8% in 2024, reaching a record AED 1.2 trillion in total value. The non-oil sector expanded by 6.2%, contributing AED 644.3 billion to the GDP. This marked the highest-ever contribution from non-oil activities, accounting for 54.7% of the total GDP, according to data from the Statistics Centre – Abu Dhabi, as reported by state news agency WAM.
Population growth has also been a key factor. Abu Dhabi’s population surpassed four million in 2024, intensifying demand for housing and residential developments. This demographic shift has led to increased interest in new master-planned communities such as Al Hudayriat, Balghaiylam on Yas Island, Mamsha Gardens and Saadiyat Lagoons. These projects are attracting both local and international buyers and contributing to the emirate’s reputation as a desirable place to live and invest.
Premium Segment and Price Trends
The luxury property segment has seen particularly strong performance. Premium apartments accounted for 57% of total apartment sales value in the first half of 2025 which is more than double as compared to 2023. This indicates a growing interest for luxury living spaces, especially in prime locations.
Property prices have also risen in response to heightened demand. Apartment prices increased by 14% year-on-year in Q2 2025, whereas villas and townhouses saw an 11% rise. Saadiyat Island emerged as the most expensive location for apartments, with prices ranging from AED 14,000 to AED 77,000 per square metre. Ramhan Island recorded the highest prices for villas and townhouses and reached AED 37,000 per square metre.
Supply and Future Outlook
Its been a struggle to match the supply standards as there has been a strong rise in demand. As of mid-2025, Abu Dhabi’s residential inventory stood at 400,000 units. ADREC has stated that the housing supply will grow by 4.6% annually through 2028, adding approximately 64,000 new units. This expansion aims to address the current imbalance between supply and demand and support the emirate’s long-term development goals.
Developer Performance and New Projects
Major developers have reported strong sales figures, reflecting the positive market conditions. One of Abu Dhabi’s leading real estate firms Aldar has just announced AED 1.8 billion in revenue from the sale of 450 townhouses at Al Deem which is located in the northeast of Yas Island. Additionally, Aldar generated over AED 3.5 billion from Fahid Beach Residences and The Beach House—Fahid Island’s inaugural residential offerings launched in June. Another AED 850 million came from sales at the Waldorf Astoria Residences on Yas Island.
These figures highlight the success of new developments and the growing interest in waterfront and luxury properties. The strategic location, high-end amenities and branding of these projects have made them attractive to both domestic and foreign buyers.
Rental Market Trends
The rental segment has also shown resilience and growth. Total lease values reached AED 8.2 billion in the first half of 2025, a 6% increase compared to the same period in 2024. Apartment rents have risen by 21% in the past two years, while villa and townhouse rents have gone up by 7%. These increases reflect the strong demand for rental properties which is driven by population growth and limited housing supply.
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