Source : WAM
The Abu Dhabi Real Estate Centre (ADREC), the custodian and regulator of Abu Dhabi’s real estate sector, has released the latest Real Estate Market Report 2025, providing an in-depth analysis of supply and demand dynamics, pricing trends, investment patterns, and forward-looking projections shaping the emirate’s evolving property landscape.
This report represents the latest edition in a bi-annual series of comprehensive market analyses, positioning Abu Dhabi as a regional leader in data-driven real estate decision-making.
ADREC’s flagship report serves as the authoritative source for transparent real estate insights, highlighting market values reaching historic highs, driven by sustained economic growth, a robust 7.5 percent population increase in 2024, and strong confidence from foreign investors.
The report offers detailed analyses of supply and demand, transaction performance metrics, geographic distribution patterns, and projections through 2030.
“The report demonstrates Abu Dhabi’s position as a global real estate destination of choice, with a sector defined not only by growth, but by stability, transparency, and long-term confidence,” said Rashed Al Omaira, Director-General of ADREC. ” The data confirms that demand fundamentals remain strong, supply expansion is disciplined, and price movement is occurring in an orderly and sustainable manner. These dynamics reflect the strength of Abu Dhabi’s economic foundation and the effectiveness of a regulatory framework designed to safeguard investors while enabling responsible development.”
He added, “As we look towards 2030, continued planning discipline, advanced digital infrastructure, and strengthened governance will remain central to shaping a resilient real estate ecosystem that supports Abu Dhabi’s position as a leading global destination to live, invest, and thrive.”
The 2025 transaction performance set new benchmarks for market activity, with total real estate values reaching AED142 billion, marking a remarkable 44 percent increase from 2024 levels.
Real estate sales dominated activity, totaling a record AED93 billion and representing 66 percent of overall transacted value, highlighting exceptional market health and robust transaction activity.
Residential unit sales were the main growth driver, rising from approximately AED19 billion in 2022 to AED76 billion in 2025 a fourfold increase fueled by off-plan sales and master-planned community developments.
The market’s international appeal is evident in foreign investment patterns, with resident expatriates and non-resident investors accounting for 62 percent of total residential sales in 2025. The top 10 developers captured 91 percent of residential off-plan primary sales value, totaling AED50 billion, while the top 10 projects contributed 32 percent of total sales, equivalent to AED24 billion.
Abu Dhabi’s real estate market demonstrates fundamental strength through sustained demand-supply imbalances across all sectors. Residential inventory reached 401,000 units in 2025, with occupied units growing at 6.6 percent annually compared to 2.8 percent supply growth since 2022, creating conditions for accelerated price appreciation.
Apartment prices recorded the sharpest annual rise in recent years, with sale prices up 19 percent and new lease prices climbing 16 percent between 2024 and 2025.
Villa performance mirrored this strength, with sales prices rising 13 percent and rental yields showing robust 14 percent growth in investment zones. The market’s structural health is supported by rental units comprising 71 percent of total occupied units, driving strong rental returns across the emirate.
Future supply projections indicate continued momentum, with residential stock expected to grow 2.9 percent annually through 2030, supported by 43,000 new units from investment zones, where 98 percent of new apartments will be delivered.
Abu Dhabi’s commercial sectors also demonstrated strong performance, with retail and office markets achieving multi-year occupancy highs, supported by economic growth and constrained supply expansion. The retail sector reached 3.8 million square metres of total supply by 2025, with street retail and community malls forming 44 percent of the gross leasable area.
Overall retail occupancy rose to 94 percent in 2025, reaching a five-year peak, driven by demand outpacing annual supply growth of 2.3 percent, resulting in new lease prices increasing 8 percent year-on-year.
The office market also showed robust performance, with total supply at 3.4 million square metres and occupancy remaining above 96 percent. Supply growth remained below 2 percent compared to 2024, while 9 percent job growth and 6.4 percent expansion in professional roles contributed to an 11 percent increase in new office lease prices in 2025.
Yas Island emerged as the leading office hub, accounting for 20 percent of new supply between 2022 and 2025, demonstrating geographic diversification across the emirate’s commercial landscape.
ADREC has advanced digital real estate services, including virtual transaction capabilities, enhanced analytics, and expanded market transparency, aligned with the Abu Dhabi Government Digital Strategy 2025–2027.
Robust data methodologies, including price-range validation, transaction filtering, and geographic stratification, ensure analytical accuracy and support informed decision-making throughout the sector.
