Demand continues to surpass deliveries in the Abu Dhabi real estate market with the sector experiencing the strongest ever half-year performance in the first half of this year, says a new report.
The Abu Dhabi Real Estate Centre (ADREC), the custodian and regulator of Abu Dhabi's real estate sector, has released its inaugural ‘Real Estate Market Report’ marking a new chapter in strengthening transparency, trust, and data driven decision making in the sector.
The in-depth report highlights the strongest ever half year performance of the sector, driven by population growth, foreign investment, and a transition to premium grade developments.
Record transactions growth
Based on the findings in the report, the total value of real estate transactions in the first half of this year reached a record AED54 billion ($14.7 billion) in the Emirate, indicating a 42% increase compared to the same period in 2024. The sales of residential units were one of the primary factors driving this trend, with transactions worth AED25 billion, representing a 38% year-on-year growth, and sales volumes rising by nearly one-fourth. Cash transactions continue to be the dominant mode of payment, amounting to 81% of total sales.
The inaugural report, a first in a regular series of publications, provides an extensive overview of Abu Dhabi’s real estate market, including trends in transactions, residential sales and leasing performance, supply and demand dynamics, price movements across apartments, villas, townhouses, and the outlook for future supply.
It also highlights the contribution of key investment zones, the role of top performing districts and projects, the growing share of the luxury segment, and the dominance of cash transactions.
Supply and demand
The market’s growth was driven by resilient demand surpassing supply in Abu Dhabi. The total residential inventory for the emirate stood at ~400,000 units in H1 2025, with an average supply growth of ~2.6% per year since 2022. The demand has risen by ~6% over the same period. Based on consolidated data collected since 2019, the report confirms that this imbalance has been a consistent structural trend, with demand continuing to outpace new deliveries. This has led to strong price growth with prices of apartment sales increasing by 14% year-on-year in the second quarter of 2025, while villa/townhouse prices rose by 11%.
It is estimated that the future residential supply within the Abu Dhabi region will increase by ~4.6% by 2028, adding between 45,000 – 55,000 units, opening opportunities for additional investment.
Eng. Rashed Al Omaira, Acting Director General of ADREC, said: " For the first time, investors, developers and policymakers have a single trusted source of insight that shows how the market is performing and where it is heading. This inaugural report is a new benchmark for transparency and gives our stakeholders the clarity and information they need to invest with confidence and drive the Emirate’s continued growth. Abu Dhabi’s real estate market continues to demonstrate its strength, setting new records in both sales value and volume. The combination of economic growth, international investor confidence, and the delivery of high-quality, master-planned communities is reinforcing the Emirate’s position as a premier destination for investment and living.”
“We’re making sure our regulations keep pace with how fast the market is growing, and that buying, selling, or renting in Abu Dhabi is as straightforward as it can be. These steps will help us build on this record performance and keep Abu Dhabi competitive on both a regional and global level,” he added.
Master planned communities
Master planned projects have significantly influenced the market’s performance, with the top 10 developments contributing approximately half of total residential unit sales value in H1 2025. Al Hudayriat Island topped the list with AED2.4 billion in sales, followed by landmark luxury and mixed-use developments like Bal Ghaiylam, Mamsha Gardens, and Saadiyat Lagoons. The premium apartment segment increased rapidly, representing 57% of apartment sales value in H1 2025 and more than double its share in 2023 with Al Saadiyat Island emerging as the attraction point for ultra-premium launches.
Rental market mirrors upward trend
The rental market has also mirrored this upward trend, with total lease values reaching AED8.2 billion in H1 2025, up 6% from the same period last year. Apartment rents increased by 21% and villa/townhouse rents by 7% in the last two years, showcasing continued demand in both high-end and family-oriented communities.
Leveraging AI to unlock value
The analytics of ADREC’s real estate report has been produced by proprietary advanced AI tools to which were leveraged to cleanse and enrich national datasets across data platforms unlocking scalable, high-quality analysis and insights for Abu Dhabi’s real estate market. – TradeArabia News Service