Abu Dhabi‘s residential real estate sector recorded AED73.2 billion in sales in 2025, with transactions climbing 55 per cent year-on-year to reach 22,400, according to figures published by real estate advisory firm Cavendish Maxwell.
Off-plan sales dominated activity throughout the year, accounting for 71 per cent of transactions. The segment recorded 15,900 deals – a rise of 68 per cent compared with the 9,400 transactions logged in 2024. Ready sales also climbed, posting growth of 31 per cent over the same period.
Apartment prices rose more than 15 per cent on average – an acceleration from the 10.9 per cent growth recorded in 2024 – while villa prices increased by 12.2 per cent.
Yas Island rents up 23% as Abu Dhabi property market posts record year in 2025
Yas Island registered the largest apartment price rise at 18 per cent, followed by Al Reem Island at 17 per cent. For villas, Yas Island and Saadiyat Island posted increases of 17 per cent and 13 per cent respectively.
Rents followed a similar path. Average apartment rents climbed 12.5 per cent year-on-year, with Yas Island tenants facing a 23 per cent increase – the steepest rise across all districts. Al Reef and Al Reem Island saw rent hikes of 15 per cent, while Al Raha Beach recorded a more restrained increase of 10 per cent. Villa rents rose an average of 5.5 per cent, with Al Reef up nearly 10 per cent and Saadiyat Island registering only a 1 per cent increase.
“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, geopolitcal tension in the wider region could influence investor sentiment and capital flows. However, Abu Dhabi’s strong sovereign buffers and diversified economy are expected to provide meaningful insulation, hleping to sustain market confidence and stability,” Andrew Laver, Director, Cavendish Maxwell Abu Dhabi said in a statement.
“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.
“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.
Apartments accounted for two thirds – 66 per cent – of all transactions in 2025, driven by a concentration of new launches in that segment. Total apartment deals reached 14,800, a 58 per cent increase on 2024. Off-plan apartment sales numbered 10,100, while the ready market grew by nearly 36 per cent to 4,700 transactions.
Villas and townhouses also gained momentum, with sales volumes up by almost 50 per cent to approximately 7,600 units. Off-plan villa and townhouse transactions rose 63 per cent to 5,800 deals, while ready sales grew 19 per cent to 1,800 transactions.
Al Reem Island retained its position as the top location for apartment sales, recording 5,100 transactions in 2025 – a 75 per cent increase on the prior year. Yas Island came second with around 1,000 sales, while Fahid Island emerged as a newcomer to the top tier with 725 transactions. The four leading locations – Al Reem, Yas, Fahid and Saadiyat Islands – collectively accounted for more than 75 per cent of all apartment deals.
For villas and townhouses, Al Bahyah led all districts with 339 transactions, followed by Al Hidayriyyat (137), Yas Island (135), Al Reem Island (123) and Zayed City (122). Together, these five areas represented over 48 per cent of all villa and townhouse sales.
Aldar Properties held the top position among developers for the second year in a row, completing 5,300 sales and commanding a market share of just over 32 per cent. Modon registered the largest growth of any developer, rising from 485 sales in 2024 to 2,700 in 2025 and securing a market share of close to 17 per cent. Reportage Properties more than tripled its transaction count, from 400 to 1,300. Bloom Holding and Radiant Real Estate held shares of 4.8 per cent and 4.5 per cent respectively.
Around 7,000 new homes were delivered in Abu Dhabi in 2025, bringing total residential stock to 315,000 units. The development pipeline is substantial, with 15,900 units scheduled for completion this year, 16,800 in 2027 and 22,300 in 2028. This would push total supply to approximately 371,800 units by the end of 2028.
However, Cavendish Maxwell cautioned that based on historical handover trends, actual deliveries in 2025 are likely to range between 6,500 and 9,000 units rather than the headline figure of 15,900. The firm noted that a controlled pace of supply would help support pricing and avoid imbalances in the market.
