Abu Dhabi’s residential real estate sector reached a record-breaking AED73.2 billion ($20 billion) worth of sales in 2025 as transactions surged 55 percent year-on-year to reach 22,400, according to real estate advisory and property consultancy Cavendish Maxwell.
Cavendish Maxwell, in its latest insight and analysis, said that off-plan sales were the major part of sales activity, at 71 percentage points, which were backed by strategic project launches, with attractive payment plans and incentives provided by developers.
Off-plan sales increased 68 percent, with 15,900 transactions, in comparison to 9,400 in 2024. Ready sales surged by 31 percent.
Approximately 7,000 new homes will be handed over in Abu Dhabi in 2025, which will increase the total supply of the city to 315,000 units.
It added that some 15,900 units would be completed this year, where history indicated that actual handovers could be between 6,500 and 9,000.
Andrew Laver, Director, Cavendish Maxwell Abu Dhabi, said, “The UAE capital’s residential real estate market reached historic highs in 2025, reflecting robust buyer demand and increased investor confidence. While Abu Dhabi’s residential market enters 2026 from a position of strength, geopolitical tension in the wider region could influence investor sentiment and capital flows.”
Laver stated, “However, Abu Dhabi’s strong sovereign buffers and diversified economy are expected to provide meaningful insulation, helping to sustain market confidence and stability.”
He said, “The strength of off-plan and ready transactions in parallel indicates a broad market base. This balance is important as it shows that growth is sustainable across both segments and is not concentrated in one.”
The top official reported, “While sales and rental prices in Abu Dhabi are likely to rise further in the near term, the pace of growth will vary from area to area as new supply enters the market.”
“In addition, based on previous handover trends, the number of handovers could be lower than initially projected, with a measured pace of supply expected to support pricing momentum and prevent market imbalances,” he added.
Cavendish Maxwell reported a rise in apartment prices by an average of 15.1 percent, compared to a 10.9 percent rise in 2024, which is supported by an expanded buyer base.
The greatest increases were at Yas Island (18 percent) and Al Reem Island (17 percent). Elsewhere, the average increase in villas is 12.2 percent relative to 2024, with 17 percent and 13 percent increases in Yas Island and Saadiyat Island, respectively.
However, the average rents for apartments climbed 12.5 percent year-on-year, with wide variations between districts. Tenants at Yas Island witnessed a 23 percent increase in rents, with an upsurge of 15 percent at Al Reef and Al Reem Island.
There was a more modest hike of 10 percent at Al Raha Beach. The average increase in Villa rents was 5.5 percent, although, similarly to apartments, there were wide variations across regions. Villa rents climbed by nearly 10 percent at Al Reef, but just 1 percent at Saadiyat Island.
The report said that two-thirds (66 percent) of sales transactions in 2025 were of apartments, supported by high developer activity in the apartment market, which contributed to most of the new launches.
Apartments accounted for 14,800 deals, up 58 percent on 2024, with off-plan leading the growth with 10,100 sales. The ready apartment market was also boosted to about 4,700 transactions by approximately 36 percent.
Villas and townhouses also demonstrated good momentum since the sales volumes increased by nearly 50 percent compared to the preceding year. Approximately 7,600 units were bought, which is a healthy recovery following a decline in 2024, described by Cavendish Maxwell.
It reported that once more, off-plan led the revival, up 63 percent to 5,800 deals, and the ready market soared 19 percent with 1,800 deals.
