Abu Dhabi’s real estate sector has posted its strongest half-year performance on record in H1 2025, with demand consistently surpassing supply, according to the inaugural Real Estate Market Report released by the Abu Dhabi Real Estate Centre (ADREC).
The report represents a significant milestone in advancing market transparency, trust, and data-driven decision-making, offering investors and policymakers an in-depth look at transaction trends, price movements, and future supply forecasts.
Record-Breaking Transactions
The total value of real estate transactions in the first half of 2025 surged to AED 54 billion ($14.7 billion) — a 42% year-on-year increase. Residential sales played a leading role, contributing AED 25 billion in value, with volumes up nearly 25%. Cash transactions accounted for 81% of all sales, underscoring the market’s liquidity and investor confidence.
Supply and Demand Imbalance
Abu Dhabi’s residential inventory stood at approximately 400,000 units in H1 2025, with annual supply growth averaging 2.6% since 2022. In contrast, demand has grown at nearly 6% annually over the same period, resulting in strong upward pressure on prices. Apartment prices rose 14% year-on-year in Q2 2025, while villa and townhouse prices climbed 11%.
Future supply is expected to expand by 4.6% by 2028, adding between 45,000 – 55,000 units, presenting new opportunities for developers and investors.
Master-Planned Communities Drive Sales
Master-planned developments were a major growth driver, accounting for nearly 50% of total residential sales value in H1 2025. Al Hudayriat Island led the way with AED 2.4 billion in sales, followed by premium destinations like Bal Ghaiylam, Mamsha Gardens, and Saadiyat Lagoons. Demand for ultra-premium apartments surged, with Al Saadiyat Island emerging as a prime hub for high-end launches.
Rental Market on the Rise
Leasing activity reflected the same upward trajectory, with total lease values reaching AED 8.2 billion in H1 2025, up 6% year-on-year. Apartment rents have risen 21% over the past two years, while villa and townhouse rents increased 7%, highlighting ongoing demand in both luxury and family-centric communities.
Technology-Driven Market Insights
ADREC leveraged AI-powered analytics to cleanse and consolidate data from multiple platforms, delivering scalable and high-quality insights. This innovation is setting a new benchmark for market intelligence and empowering investors to make informed decisions with confidence.
Eng. Rashed Al Omaira, Acting Director General of ADREC, emphasized:
“For the first time, stakeholders have a single, trusted source of insight that clearly shows how the market is performing and where it is headed. This report marks a major step toward transparency and helps investors, developers, and policymakers plan with confidence.”
