Residential sales account for half of Abu Dhabi’s real estate transactions in 2025

The Abu Dhabi Real Estate Centre (ADREC), has released the latest Real Estate Market Report 2025, registering 44 percent yearly surge in real estate transactions to Dh142 billion in 2025. The growth was buoyed by sales transactions, which accounted for 66 percent of total transacted value with a record-high Dh93 billion.

Residential unit sales emerged as the primary growth driver, expanding from approximately Dh19 billion in 2022 to Dh76 billion in 2025, representing a fourfold increase driven by off-plan sales growth and master-planned community development. The market's international appeal is demonstrated through foreign investment patterns, with resident expatriates and non-resident foreign investors driving 62 percent of total 2025 residential sales value. Top 10 developers captured 91 percent of residential off-plan primary sales value totalling Dh50 billion, while the top 10 projects contributed 32 percent of total sales at Dh24 billion.

Rashed Al Omaira, Director General of ADREC, said, "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. 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.

"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.”

Abu Dhabi's residential inventory reached 401,000 units in 2025, with occupied units growing at 6.6 percent annually compared to supply growth of 2.8 percent since 2022, creating conditions for accelerated price appreciation.

Apartment prices recorded their sharpest annual increase in recent years, with sale prices rising 19 percent and new lease prices climbing 16 percent between 2024 and 2025. Villa performance mirrored this strength, with sales prices increasing 13 percent and rental yields demonstrating robust 14 percent growth in investment zones.

The market's structural health is evidenced by rental units comprising 71 percent of total occupied units, driving strong rental yields 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 anticipated from investment zones where 98 percent of new apartments will be delivered.

Abu Dhabi's retail and office markets reached multi-year occupancy highs driven by economic expansion and constrained supply growth. The retail sector achieved total supply of 3.8 million square metres by 2025, with street retail and community malls forming the market backbone at 44 percent of total gross leasable area. Overall retail occupancy surged to 94 percent in 2025, reaching a five-year peak supported by demand growth outpacing 2.3 percent annual supply increases, resulting in new lease prices accelerating 8 percent year-over-year.

Office market performance proved equally robust, with total supply reaching 3.4 million square metres and occupancy maintaining structural strength above 96 percent. Supply growth of less than 2 percent compared to 2024, combined with 9 percent job growth and 6.4 percent expansion in professional roles, drove new office lease prices up 11 percent in 2025. Yas Island emerged as the leading office destination, driving 20 percent of new supply between 2022 and 2025, highlighting geographic diversification within the emirate's commercial landscape.

ADREC's technological advancement of digital real estate services, including virtual transaction capabilities, enhanced analytical tools, 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 across the sector.

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