Abu Dhabi Real Estate Market Achieves Record Growth in H1 2025
The Abu Dhabi real estate sector has experienced a remarkable surge, recording transactions worth Dhs54bn ($14.7bn) in the first half of 2025. This marks a 42% increase compared to the previous year, as revealed by the inaugural market report from the Abu Dhabi Real Estate Centre (ADREC).
Residential Sales Hit New Heights
According to the report released on Tuesday, residential sales reached Dhs25bn, reflecting a 38% year-on-year increase and setting a new semi-annual record. The demand for residential properties grew by approximately 6% across the emirate, outpacing the supply growth of 2.6%. This trend highlights significant opportunities for further development in the region.
Current and Future Residential Inventory
As of mid-2025, the residential inventory in Abu Dhabi stood at about 400,000 units. Apartment prices saw a 14% year-on-year increase in Q2 2025, while villa and townhouse prices rose by 11%. Looking ahead, future supply is projected to grow by 4.6% through 2028, adding between 45,000 and 55,000 units to the market.
Insights from ADREC
Engineer Rashed Al Omaira, acting director general of ADREC, stated, Abu Dhabis real estate market continues to demonstrate its strength, setting new records in both sales value and volume. This inaugural report is a new benchmark for transparency and gives our stakeholders the clarity and information they need to invest with confidence.
Key Drivers of Market Activity
High-value master-planned communities have been pivotal in driving market activity, with the top 10 developments accounting for about half of total residential unit sales in H1 2025. Al Hudayriat Island led the way with Dhs2.4bn in sales, followed by luxury and mixed-use projects such as Bal Ghaiylam, Mamsha Gardens, and Saadiyat Lagoons.
Rising Rental Demand
Rental demand also saw an uptick, with lease values increasing by 6% year-on-year to Dhs8.2bn in H1 2025. Over the past two years, apartment rents have surged by 21%, while villa and townhouse rents have risen by 7%.
Dominance of Cash Transactions
Cash remained the dominant payment method, accounting for 81% of total sales. This trend underscores the robust financial health of the market and the confidence of investors in Abu Dhabis real estate sector.
ADRECs Role and Tools
The analysis was conducted using ADRECs proprietary AI tools, which are designed to cleanse and enrich national datasets for more accurate market insights. Established in 2023 under the Department of Municipalities and Transport, ADREC serves as the custodian and regulator of Abu Dhabis real estate sector, with a mandate to enhance transparency and efficiency in the market.
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