Abu Dhabi’s residential property market continued its sturdy progress in Q2 2025, with common costs rising 6.4 per cent quarter-on-quarter to AED1,230 per sq ft ($335), in accordance with Knight Frank’s newest Abu Dhabi Residential Market Assessment.
This brings the whole annual worth progress within the emirate to 17.3 per cent, marking a 31.3 per cent enhance since Q1 2020.
Flats led the quarterly positive aspects, climbing 6.8 per cent to AED 1,296 per sq ft ($353), reflecting a 17.3 per cent year-on-year rise.
Abu Dhabi actual property costs
Al Raha Seashore and Al Saadiyat Island have been standout places for condominium worth progress, up 11 per cent and 10 per cent respectively since H1 2024.
Each areas provide prime beachfront dwelling, with Al Raha Seashore benefiting from its proximity to Yas Island’s leisure sights.
Villas outperformed over the long run, posting a 3.4 per cent quarterly enhance to AED 1,103 per sq ft ($300), with costs up 42.3 per cent since Q1 2020.
Villas on Al Saadiyat Island recorded a 28 per cent year-on-year soar, adopted by Yas Island with a 22 per cent rise. Villas signify 37.4 per cent of Abu Dhabi’s provide pipeline, the place demand stays robust attributable to restricted new villa developments and aggressive pricing in comparison with Dubai.
Residential transactions reached AED9bn ($2.45bn) in H1 2025, down 36 per cent from H1 2024, reflecting provide constraints regardless of the supply of 890 new models.
Nonetheless, greater than 33,000 properties are underneath development and anticipated by 2029, with residences comprising 62 per cent of this future provide.
Yas Island leads new developments with greater than 8,000 models, adopted by Al Shamkha with round 3,000 models. Branded residences by Aldar at Mandarin Oriental and Nobu additionally bolster Saadiyat Island’s pipeline.
Knight Frank highlights rising curiosity from worldwide consumers attracted by Abu Dhabi’s life-style facilities and enterprise atmosphere. Non-public capital focusing on Abu Dhabi’s residential market is estimated at $1.6bn, making it the UAE’s second hottest vacation spot after Dubai.
Demand from world high-net-worth people (HNWIs) continues to rise, with 19 per cent intending to buy property in Abu Dhabi in 2025, up from 14 per cent final yr.
Notably robust curiosity comes from these with wealth between $30m and $50m, the place 75 per cent plan to purchase, and 65 per cent of these above $50m categorical comparable intentions.
Shehzad Jamal, Accomplice – Technique and Consulting, MENA, mentioned: “Some 63 per cent of worldwide high-net-worth people eager about shopping for in Abu Dhabi are doing so for private causes; they intend to make use of the property as their fundamental residence, or vacation residence, or for retirement.
“The remaining 37 per cent are investment-driven. For consumers who could have been priced out of Dubai, or who need to diversify their UAE portfolio, Abu Dhabi is more and more enticing, with common residential costs rising by round 17 p.c year-on-year.”
With common residential costs roughly 30 per cent decrease than Dubai, Abu Dhabi’s market gives enticing worth for traders and homebuyers amid continued robust demand and restricted provide.
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