ADREC Releases its First Abu Dhabi Real Estate Market Report

Abu Dhabi, UAE – September 25, 2025: The Abu Dhabi Real Estate Centre (ADREC), the official custodian and regulator of Abu Dhabi’s property sector, has released its first-ever Real Estate Market Report, a landmark step in strengthening transparency, trust, and data-driven decision-making within the emirate’s growing real estate industry.

The report highlights record-breaking performance in the first half of 2025, driven by population growth, foreign investment, and a sharp shift toward premium-grade, master-planned developments. It provides detailed insights into transaction activity, residential sales and leasing performance, supply and demand trends, and the rise of luxury communities across Abu Dhabi.

Strong Demand Outpaces Limited Supply

Abu Dhabi’s real estate market has been buoyed by strong, sustained demand consistently exceeding the rate of new housing deliveries.

As of the first half of 2025, the total residential inventory in the emirate reached approximately 400,000 units. Since 2022, supply growth has averaged just 2.6% annually, while demand has surged by 6% annually over the same period.

This persistent imbalance has driven significant price growth:

• Apartment prices rose 14% year-on-year in Q2 2025.
• Villa and townhouse prices increased by 11% in the same period.

Looking ahead, Abu Dhabi’s future residential supply is projected to grow by 4.6% by 2028, adding between 45,000 and 55,000 new units, signaling clear opportunities for additional investment.

“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,” said Eng. Rashed Al Omaira, Acting Director General of ADREC. “This inaugural report is a new benchmark for transparency and gives our stakeholders the clarity they need to invest with confidence and drive the Emirate’s continued growth.”

Transaction Value Hits Record $14.7 Billion

The total value of real estate transactions in Abu Dhabi reached USD 14.7 billion (AED 54 billion) in the first half of 2025, representing a 42% increase compared to the same period in 2024.

Residential unit sales were a major driver of this surge, hitting a new semi-annual record of USD 6.8 billion (AED 25 billion), a 38% year-on-year increase with sales volumes rising by nearly 25%.

Cash transactions remained dominant, accounting for 81% of total sales, highlighting strong liquidity and investor confidence in Abu Dhabi’s market.

“Abu Dhabi’s real estate market continues to demonstrate its strength, setting new records in both sales value and volume,” said Al Omaira. “Economic growth, international investor confidence, and the delivery of high-quality, master-planned communities are reinforcing Abu Dhabi’s position as a premier destination for investment and living.”

Master-Planned Communities Leading Growth

The performance of Abu Dhabi’s real estate sector was heavily influenced by master-planned developments, which contributed roughly 50% of total residential sales value in H1 2025.

• Al Hudayriat Island led the market with USD 653 million (AED 2.4 billion) in residential sales.
• Other high-performing projects included Bal Ghaiylam, Mamsha Gardens, and Saadiyat Lagoons.

The premium apartment segment experienced rapid growth, now representing 57% of total apartment sales value — more than double its share from 2023. Saadiyat Island emerged as the epicenter for ultra-premium launches, catering to both local and international high-net-worth investors.

Rental Market Growth Mirrors Sales Surge

Abu Dhabi’s rental market followed a similar upward trajectory, with total lease values reaching USD 2.23 billion (AED 8.2 billion) in the first half of 2025, up 6% year-on-year.

• Apartment rents have surged by 21% over the last two years.
• Villa and townhouse rents rose by 7% during the same period.

This growth reflects robust demand across both high-end luxury properties and family-oriented communities, fueled by population expansion and new job creation.

Advanced AI Powers Market Insights

To deliver accurate and actionable data, ADREC leveraged proprietary artificial intelligence tools to cleanse and enrich national datasets, providing high-quality, scalable analytics.

These insights enable policymakers, investors, and developers to track market performance in real time and make informed decisions that align with Abu Dhabi’s long-term urban planning and investment strategies.

Regulations and Future Competitiveness

Al Omaira emphasized that ADREC’s role goes beyond reporting data.

“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 said.

The center’s ongoing efforts are aimed at ensuring that Abu Dhabi remains a transparent, secure, and competitive environment for real estate investment, while supporting sustainable growth for decades to come.