Abu Dhabi’s real estate market recorded strong performance in the first half of 2025, with property sales accelerating across affordable, mid-tier, and luxury segments amid rising prices and growing investor appetite.
According to the latest data from dubizzle’s H1 2025 Abu Dhabi Property Sales Market report, the emirate continues to emerge as one of the most attractive real estate investment destinations in the region, thanks to large-scale infrastructure projects, increased transparency, and diversified off-plan offerings.
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Transaction values surged in the first six months of 2025, underpinned by demand for ready and off-plan properties. The introduction of digital platforms like Madhmoun and headline developments such as the upcoming Disneyland on Yas Island have bolstered buyer confidence and elevated price points across key neighborhoods.
In the ready property segment, prices rose across the board. Affordable apartment prices increased by 6.44 per cent, while affordable villas appreciated by up to 3.38 per cent. Mid-tier apartments and villas recorded gains of 4.91 per cent and 4.84 per cent, respectively. Luxury apartment prices surged by 8.95 per cent, with high-end villas climbing by 4.92 per cent, reflecting the strong appeal of waterfront and island communities such as Yas Island, Saadiyat Island, and Al Jubail Island.
Villas in Al Reef topped the affordable segment with a return on investment (ROI) of 6.18 per cent. Al Shamkha, Khalifa City, Zayed City, and Hydra Village also registered notable performance. In the mid-tier category, Al Raha Gardens and Al Samha gained traction among buyers, while the luxury market remained centered around prime coastal destinations. Al Maryah Island led luxury apartments with an ROI of 8.48 per cent, followed by Yas Island and Al Raha Beach.
Abu Dhabi’s off-plan market gained further momentum in H1 2025, with increased inventory and demand across all pricing tiers. In the affordable category, projects in Al Shamkha and Zayed City stood out, including Al Reeman 1 and Granada at Bloom Living. Luxury developments such as Gardenia Bay and Yas Bay on Yas Island saw significant buyer interest, with apartments averaging Dh2.11 million and Dh1.96 million, respectively. Saadiyat Cultural District reached even higher with average prices of Dh4.66 million.
Mid-tier off-plan apartments on Al Reem Island — such as Vista 3, Reem Hills, and Renad Tower — drew considerable attention, alongside communities in Masdar City and Shakhbout City. On the villa side, Reem Hills and Royal Park at Masdar City dominated mid-tier demand, while luxury villa investors targeted Yas Riva and projects in Saadiyat Island and Al Jurf.
Returns across the board reflected the capital’s investment appeal. Affordable apartments in Al Reef delivered ROIs of 9.46 per cent, while Al Ghadeer followed closely with 8.42 per cent. Mid-tier apartment yields peaked at 7.33 per cent on Al Reem Island and 7.20 per cent in Masdar City. Villas in Hydra Village, Al Raha Gardens, and Saadiyat Island offered solid rental yields, with the latter delivering a top-tier ROI of 5.56 per cent.
Supporting dubizzle’s findings, Bayut’s H1 2025 data confirms a parallel trend of rising demand, especially in off-plan developments. Affordable sectors such as Al Reef, Al Ghadeer, and Khalifa City remained favored by budget-conscious buyers, while Al Reem Island and Masdar City attracted mid-segment investors. For luxury buyers, Yas Island and Saadiyat Island stood out, buoyed by the anticipation surrounding Disneyland and expanding waterfront amenities.
Bayut’s research also noted that listing prices for affordable apartments increased by up to 7 per cent, while mid-tier apartments appreciated by 6 to 11 per cent. Mid-tier villas in Al Samha posted a steep 26.7 per cent rise, indicating a rising appetite for family homes. In the luxury bracket, apartment prices in Yas and Saadiyat Islands rose by as much as 17 per cent, although some villa communities like Al Jubail Island experienced a price correction of 17.8 per cent due to shifting buyer focus.
The market’s robust digital transformation has also played a role in improving buyer confidence. CEO of dubizzle and Bayut, and Board Member of the Dubai Chamber of Digital Economy, said: “Abu Dhabi’s real estate landscape is evolving rapidly. With over 9.3 million visits recorded on Bayut’s Abu Dhabi listings alone in six months, demand is clearly on the rise. Smart platforms like Madhmoun and landmark projects are reshaping the capital into a transparent, future-ready market.”
issacjohn@khaleejtimes.comis Managing Editor at media and has over 45 years of experience in top-tier newspapers across UAE. A seasoned business writer and economic analyst, he brings unmatched insight into the geopolitics and geoeconomics shaping the Gulf and India.
