A report from the Abu Dhabi Real Estate Center, which oversees the real estate sector in Abu Dhabi, has highlighted the ongoing strength of the real estate market within the emirate throughout 2025. The sector is expected to achieve unprecedented levels in property transaction values, driven by increasing demand, expanding foreign investments, and the flourishing residential and commercial sales sectors.
The report presents positive indicators that reflect the robustness of the sector and the stability of its market structure, with projections of sustainable growth extending until 2030. This growth is supported by an advanced regulatory framework and an enabling economic environment, reinforcing the emirate’s status as a global hub for real estate investment, living, and working.
Leading Destination
Rashed Al-Amiri, the General Director of the Abu Dhabi Real Estate Center, stated that the data confirms Abu Dhabi’s advanced position as a prominent global destination for real estate investment. He emphasized that the sector’s performance is not only about achieving high growth rates but also about ensuring stability, enhancing transparency, establishing governance, and boosting long-term investor confidence.
He added that market indicators demonstrate strong demand fundamentals against a backdrop of measured and balanced supply growth, supporting price stability and maintaining the market’s appeal. This reflects a vibrant economy and an effective regulatory framework that protects investors and encourages responsible real estate development practices.
Corporate Governance
He emphasized that disciplined planning methodology, advanced digital infrastructure, and enhanced corporate governance will remain key pillars through 2030. These elements aim to create a more resilient real estate system that solidifies Abu Dhabi’s position as a global destination for living and investing, ultimately fostering prosperity and long-term growth.
The total value of property transactions in 2025 is expected to reach approximately AED 142 billion, marking a 44% increase compared to 2024 and achieving an unprecedented level of activity. Sales transactions alone are projected to account for AED 93 billion, or 66% of the total transaction value, showcasing the market’s strength and performance.
Residential unit sales emerged as a primary growth driver, soaring from about AED 19 billion in 2022 to AED 76 billion in 2025, a fourfold increase over three years. This surge is fueled by a rise in off-plan sales and the expansion of major residential community developments.
Additionally, local residents and foreign investors represented approximately 62% of total residential sales in 2025, illustrating the market’s attractiveness to external investments.
In terms of market structure, the top 10 real estate developers captured 91% of the total value of off-plan residential sales, amounting to AED 50 billion, while the largest 10 projects accounted for about 32% of total sales value, approximately AED 24 billion. This indicates a regulated development environment combining operational efficiency with effective regulatory oversight.
Structural Strength
The report reveals a solid structural strength in the market, driven by an ongoing positive gap between demand growth and available supply. The total residential inventory reached 401,000 units in 2025, with the occupied units growing at an annual rate of 6.6%, compared to a supply growth rate of 2.8% since 2022, contributing to a systematic uptick in prices, reflecting a healthy and sustainable dynamic.
Residential apartment prices recorded the highest annual increase, with sale prices rising by 19%, coinciding with a 16% increase in new lease contracts between 2024 and 2025. Villas also saw a price increase of 13%, generating strong rental yields of 14% in investment areas.
Rented properties constituted 71% of the total occupied units, bolstering rental yield levels across various emirate regions. Forecasts suggest that the residential stock will grow at an annual rate of 2.9% until 2030, supported by the addition of around 43,000 new units, predominantly located in investment areas, with 98% of new apartments delivered within these zones.
Commercial Real Estate
The commercial real estate sectors continued to exhibit strong performance during 2025. The total retail supply reached 3.8 million square meters, with community centers and stores within those centers accounting for 44% of the total leasable space. This has bolstered market activity, resulting in an occupancy rate of 94%, the highest seen in five years, driven by demand growth outpacing the annual supply increase of 2.3%, leading to an 8% rise in new lease rates year-on-year.
In the office sector, total supply stood at 3.4 million square meters, with occupancy rates exceeding 96%. This occurred against a backdrop of a supply growth of only 2% compared to 2024, alongside a 9% increase in jobs and a 6.4% rise in professional specialty positions, which contributed to an 11% increase in new office lease prices in 2025. Yas Island emerged as a primary destination for office spaces, accounting for 20% of new supply between 2022 and 2025, reflecting a growing geographical diversity within Abu Dhabi’s commercial real estate landscape.
Population Growth
The report noted that market values reached historic levels driven by sustainable economic growth in the emirate and a population increase of 7.5% in 2024. This growth is coupled with a continuing influx of foreign direct investments and growing confidence from international investors in the market.
The report reaffirmed the ongoing development of the digital framework for real estate services, which includes virtual transactions and advanced market analysis tools. This initiative is aligned with Abu Dhabi’s digital strategy for 2025-2027, aimed at enhancing transparency, governance, and regulatory compliance. Utilizing advanced analytical tools ensures the accuracy of price and transaction data as well as geographic distribution, thereby supporting the reliability of indicators and facilitating data-driven decision-making.