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  • Abu Dhabi Real Estate Market Report 2025 by ADREC

Abu Dhabi Real Estate Market Report 2025 by ADREC

Abu Dhabi’s property market in 2025 is showing strong growth, high investor confidence, and steady demand across residential, commercial, and off-plan projects. According to the latest Abu Dhabi real estate report, the market has recorded impressive transaction volumes, rising property values, and strong participation from both local and international buyers.

This detailed blog explains every important number, trend, and graph from the report in a simple way. Whether you are an investor, buyer, or simply following the market, this guide will help you understand what is happening in Abu Dhabi’s real estate sector.

Abu Dhabi Real Estate Centre (ADREC) is the custodian and regulator of Abu Dhabi’s real estate sector, mandated to transform and govern the sector by enhancing transparency, strengthening regulation and compliance, enabling integrated real estate services, attracting investment, and safeguarding stakeholder interests across the full real estate value chain to support sustainable economic growth in the Emirate

Abu Dhabi real estate witnessed a pivotal year with major achievements across the sector
  1. Hit Record Transactions and Growth Rates- AED 142 Bn in real estate transactions (up 44% from 2024), out of which AED 76 Bn are residential (up 67% from 2024)
  2. Achieved Record New Project Launches – 56 new real estate projects launched in 2025
  3. Launched Digital and Virtual Buy/Sell Service -ADREC service enabling virtual real estate transactions and streamlining physical transactions
  4. Enhanced Data Transparency- Published Abu Dhabi’s first flagship real estate report, new dashboards, interactive maps with transparent real estate insights, and the ability to view and extract data at a unit level 
  5. Launched New Real Estate Services – 19 new services launched to further streamline the real estate ecosystem

Abu Dhabi and its real estate sector are beacons of financial stability

Safe and attractive market for investors

  1. Favourable tax environment -0% income tax and 9% corporate tax
  2. Certainty of domicile – 10-year Golden Visa residency attracting demand from investors, real estate buyers, and high-income talent
  3. Pegged currency to the USD – Leading to interest rates in line with the US Federal Reserve rates
  4. No capital restrictions – No restrictions on capital inflows and outflows, with full repatriation of profits to the home country
  5. Strong credit rating – AA and Aa2 by Fitch and Moody’s
  6. Ease of doing business – Ranked 5th in the IMD World Competitiveness Ranking (2025)
  7. Investment zones enabling global capital inflows – ADGM is Abu Dhabi’s main financial hub based on common law, housing 161 asset managers managing 220 funds as of 2025
  8. ADREC Escrow Account – Escrow Management System for real estate in Abu Dhabi, where funds for offplan properties are held securely
  9. 100% freehold to foreigners -100% real estate ownership (units, lands or buildings) in designated investment areas

Strong economy driving talent attraction and career growth

Robust macro-economic indicators

  1. 7.5% population growth – Population grew by 7.5% in 2024, reaching ~4.2 million; a 51% increase over the past decade; job growth exceeded 9% in 2024, with professional roles expanding by 6.4%

  2. 7.6% non-oil GDP growth- Non-oil GDP grew by ~7.6% in Q3 2025 (y-o-y), with non-oil sectors contributing ~54% of total GDP and generating AED 175.6 Bn in value added; overall GDP growth reached 7.7%
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Total Real Estate Transactions Reached AED 142 Billion
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Total real estate transactions in 2025 reached: AED 142 billion

This is a 44 percent increase compared to 2024.

The breakdown is very important:

• Sales transactions: AED 93 billion
• Mortgage transactions: AED 43 billion
• Other transactions: around AED 6 billion

Sales form the largest portion of the market. This means people are actively buying properties rather than just refinancing. That is a strong indicator of real demand.

When a market grows mainly because of sales, it shows genuine investor confidence and long term belief in the city’s growth.

Cash Transactions Show Strong Financial Confidence
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  • 61 percent of residential sales were done in cash
  • Only 39 percent used mortgages

This is a very healthy sign. When most transactions are cash based, it means buyers are financially strong. The market is not over dependent on bank loans. This reduces risk and keeps the market stable. It also shows that international investors are active, as many foreign buyers prefer cash purchases.

Sales vs Mortgage Activity

The report graph clearly shows that sales transactions are higher than mortgage transactions. This means more buyers are purchasing directly rather than depending heavily on loans. It also reflects strong cash investor activity.

Residential Supply and Occupancy 

  1. 10 key districts accounted for 65% of total residential supply for Abu Dhabi Region in 2025
  2. Investment zones accounted for more than 21% of total stock in 2025
  3. Rental units comprise ~71% of total occupied units driving strong rental yields
  4. Residential supply is projected to grow on average by 2.9% annually from 2025 to 2030 across the emirate
  5. Residential supply is projected to grow on average by ~3.5% annually (~54.6k units total) in Abu Dhabi region between 2026 and 2030
  6. Development projects will drive 80% of the supply growth in the Abu Dhabi Region between 2026 and 2030
  7. Eight major developers are driving the delivery of ~32k additional development project units in Abu Dhabi Region
  8. 5 key districts will drive ~68% of projected incremental supply between 2025 and 2030
Transactions and Residential Unit Sales
  • Total real estate transaction values hit record levels of AED 142 Bn in 2025, accelerating sharply vs prior years
  • Real estate sales drove the overall sector, accounting for a record-high aed 93 Bn in 2025
  • Annual residential unit sales values increased by ~4x from 2022 to 2025, driven by ~5x growth in off-plan sales
  • 69% of the increase in residential unit sales value between 2022 and 2025 was driven by purchases from resident expatriates and non-resident foreign investors
  • In top 10 districts for residential sales in 2025, ~53% of transactions in value were driven by expat residents
  • Residential unit sales has grown and diversified across multiple districts
  • Top 10 developers of 2025 drove +90% (AED ~50 Bn) of off-plan primary residential unit sales
  • Top 10 projects in 2025 accounted for ~32% (AED ~24 Bn) of total residential unit sales values
  • Abu Dhabi market remains Mortgaged Cash resilient, with ~87% of total residential sales conducted in cash
  • Increased demand has driven both apartment and investment zones villa/ townhouse sales prices up by 19% and 13% y-o-y respectively
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Price Growth – Apartments and Villas
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Apartment sales prices increased: 19% year-on-year in 2025

Villa and townhouse prices increased: 13% year-on-year in 2025 – Overall 63% increase since 2020

The repeat sales index graph shows prices steadily climbing from Q4 2020 to Q4 2025.

This means the same units are being resold at higher prices over time.

Off Plan Market Dominance

One of the most important findings in the report is that: 71 percent of residential sales in 2025 were off plan

  • Off plan apartments alone grew 125 percent in 2025.
  • Off plan villas and townhouses grew 45 percent.

This means buyers are purchasing properties during construction stages. Investors are confident that prices will increase before completion.

Off plan demand is strongest in prime communities, especially waterfront and lifestyle focused destinations.

Nationality Breakdown – 2025 Market Insight

Foreign and expatriate buyers played a major role in Abu Dhabi’s real estate growth in 2025.

  • Around 69% of the increase in residential sales value between 2022 and 2025 was driven by resident expatriates and non resident foreign investors.
    • In the top 10 residential districts, about 53% of total transaction value came from expat residents.

This shows that Abu Dhabi’s market is strongly supported by international capital, not just local demand. The Golden Visa program, 100% freehold ownership in investment zones, and a tax friendly environment continue to attract global investors.

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Rental Market – Record Lease Value
  • Total residential lease value reached: AED 17.6 billion in 2025
  • Lease values grew 7% compared to 2024.
  • Apartment lease prices increased 16% between 2024 and 2025.
  • Villa lease values grew at 7% annually from 2019 to 2025.
  • Apartments account for: 73% of total lease value
  • This confirms apartments remain the main rental driver in Abu Dhabi.

High-end and middle segments drive transaction value in Abu Dhabi Region investment areas

Saadiyat Island, Yas Island, Al Reem Island command the highest apartment price ceilings, reflecting premium positioning.

Most Active Areas in 2025

The report identifies top performing locations based on transaction value and volume. The report shows that certain areas dominate transactions.

  • Saadiyat Island recorded: AED 13.7 billion in sales value alone.
  • Yas Island and Al Reem Island together captured around 40 percent of total sales volume.

Future supply between 2026 and 2030 is expected to focus heavily on:

High-Demand Areas:

These areas continue to attract investors due to lifestyle appeal, waterfront views, and infrastructure development.

Top Developers in Abu Dhabi

The report highlights leading developers contributing to market growth. Some of the top developers in Abu Dhabi include:

These developers are delivering large master-planned communities, luxury waterfront residences, and branded projects.

Their consistent project launches are one major reason the market remains active and competitive..

Top 10 projects in 2025 accounted for ~32% (AED ~24 Bn) of total residential unit sales values
  1. Wadeem (Plots)
  2. Bayn
  3. Fahid Beach Residences
  4. Bal Ghaiylam
  5. Bloom Living
  6. Mamsha Gardens
  7. Al Naseem
  8. The Beach House
  9. Nawayef East
  10. Saadiyat Lagoons

The 2025 Abu Dhabi real estate report clearly shows a strong, healthy, and growing market. With billion in transactions, increasing off-plan sales, rising villa prices, and strong developer activity, the market outlook remains positive.

Top developers in Abu Dhabi continue to launch premium projects, while every major real estate company in Abu Dhabi is seeing higher investor engagement. If growth continues at this pace, Abu Dhabi will remain one of the most attractive real estate destinations in the region.

Let’s quickly review the key numbers:

  • AED 142 billion total transactions
  • AED 75.9 billion residential sales
  • 71 percent off plan dominance
  • 87 percent cash transactions
  • 19 percent apartment price growth
  • 13 percent villa price growth
  • AED 17.6 billion rental market value
  • 96 percent office occupancy

All indicators show stable, structured growth. Abu Dhabi real estate is not overheating. It is expanding sustainably with strong fundamentals.

For investors, developers, and any real estate company in Abu Dhabi, the 2025 market report confirms that the emirate continues to strengthen its position as one of the most secure and profitable property markets in the region.

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